Toys R Us Still Doesn’t Know What It Wants to Be When It Grows Up

When the final two Toys R Us stores in the U.S. closed earlier this year, it looked like the end for the once-vaunted retailer, until brand management company WHP Global stepped in and vowed to reopen somewhere in the future, whether it be in airports, pop-ups or flagship stores.

And on Wednesday (Dec. 1), WHP Global unveiled the next step in the newest Toys R Us comeback plan: a two-level, 20,000-square-foot location at the American Dream megamall in New Jersey, set to open two weeks before Christmas.

Also see: Toys R Us Opening American Dream Mall Store Before Christmas

The timing of the opening seems strange, to say the least. PYMNTS research shows that 48% of consumers began their holiday shopping before Thanksgiving, and another 36% started between Black Friday and Cyber Monday. Less than 9% of shoppers plan to start their shopping after Cyber Monday but before the week of Christmas, and 2.6% plan to start the week of Christmas.

Related news: Holiday Shopping Outlook Suggests ‘Amazon Christmas’ May Be Underway

With extended hours through the holiday season, the American Dream Toys R Us may be able to capture the spending of harried parents rushing to get things purchased and wrapped in time, as well as those who long for the nostalgia of millennials who grew up shopping at the toy store chain. But Toys R Us also has a partnership with Macy’s that resurrected its digital presence and brought the former’s merchandise to the department store’s eCommerce site. Additionally, Macy’s is set to begin opening 400 Toys R Us shop-in-shops next year as part of the collaboration.

Read more: Macy’s Brings Back Toys R Us, Exceeds Q2 Expectations

Counting on Experience

The American Dream Toys R Us will offer more than just aisles of toys. The store will include interactive displays and product demonstrations, an ice-cream shop, a two-story slide and several other elements; it will be adjacent to the Nickelodeon Universe Theme Park and DreamWorks Water Park.

“American Dream is a one-of-a-kind unrivaled retail center featuring massive entertainment experiences that make it an ideal destination for families,” Yehuda Shmidman, WHP Global chairman and CEO, said in a statement. “Debuting our first Toys R Us flagship here is a no-brainer.”

But Toys R Us is far from the only toy retailer trying to incorporate interactivity into its stores — and could be facing fierce competition in the New York-New Jersey-Connecticut tri-state area. Toy retailer CAMP, which opened its first of seven locations in 2018, has built its brand around creating a “retail destination” for families with different themes for kids to interact with and play in, such as cooking, art and travel, as well as related products for families to take home. CAMP stores also host programming, like performances and shows, for families to enjoy.

“We’re very proud that we can tell stories in a way other retailers don’t,” CAMP Co-founder Tiffany Markofsky told PYMNTS in a recent interview. Additionally, the model means CAMP isn’t solely reliant on toy sales for revenue — it also has sponsorships and ticket sales.

Creating an experience also results in “real brand loyalty,” Markofsky said, with 57% of CAMP customers returning once a month and 17% returning at least once a week. “It’s a destination for families,” she noted.

Read more: Experiential Retail Builds ‘Real Brand Loyalty’ Among Consumers

Both Toys R Us and CAMP, however, are facing stiff competition from Walmart and Amazon, the two largest retailers in the country, and supply chain issues are hitting toys particularly hard. In October, Hasbro reported that $100 million of goods ordered in the third quarter went undelivered.