Toys "R" Us is banking on its new promotional program to prop up the chain's sales during the Christmas holiday season. The retailer's Christmas Savers Club will allow consumers to put away money in an account for the holidays, al a the old bank Christmas clubs, and will add a perk -- three percent interest on the dollars in the account. When the holidays arrive and it's time to cash the account in, consumer can put the dollars to work buying products in Toys "R" Us or Babies "R" Us stores or on the company's website.
The maximum amount consumers can earn is $75 based on $2500 in the account. Members of the Christmas Savers Club can begin withdrawing funds on October 31.
"We're a relatively old brand, and we've started to use components of nostalgia within our brand, so we've looked at things that people used to do. Christmas savers' clubs were one of those things that people used a lot, especially in times when budgets were tight," said Greg Ahearn, senior vice president for marketing and e-commerce for Toys "R" Us, to The Record (Hackensack, NJ).
"Parents and gift-givers can better plan their holiday spending well in advance of the season, while we provide them with a convenient, effortless way to budget," said Mr. Ahearn, in a press release.
"Saving early for the gifts they will likely buy is smart -- plus, the added bonus they receive can cover the cost of additional presents," he added.
Industry watchers have reacted positively to the program.
"It's better than a bank account," Sean McGowan, a toy industry analyst at Needham, told the New York Daily News.
"This is money that people can feel secure that they know that no matter what happens they're going to be able to create the Christmas for their kids that they want to," Chris Byrne, toy consultant and toy trends researcher, told The Record. "That's one of the things driving layaway and all this."
[Editor's note: Toys "R" Us also offers a layaway program.)
Discussion Questions: What do you think of the Toys "R" Us Christmas Savers Club? Will we see other retailers, or perhaps even debit/credit card companies, try something similar?
- Toys "R" Us Introduces Its Christmas Savers Club, Presenting Smart Shoppers with a Rewarding Way to Save for the Holidays - Toys "R" Us
- Toys 'R' Us to unveil Christmas Savers Club that allows customers to earn 3% interest - New York Daily News
- Toys "R" Us launches Christmas Club savings program - The Record
- Christmas Savers Club - Toys "R" Us