Why is Target helping Toys “R” Us get back online?
Retailers in the U.S. have been scrambling to fill the void left since Toys “R” Us shuttered hundreds of stores and its website in the U.S. last year. Target, according to reports, has been among the most successful in picking up share previously held by its once competitor.
Yesterday, the mass merchandiser and Tru Kid Brands, parent company of Toys “R” US, announced that Target is providing product, digital capabilities and fulfillment for orders that originate on toysrus.com. What is Target thinking?
The toysrus.com site itself does not offer shopping. Instead, visitors will be able to find reviews and videos on the latest toy brands and trends. Consumers who come across a product they want to purchase will be able to click “Buy now at Target.com” to be sent to a corresponding page to complete their order.
“Target’s leadership in toys, digital and fulfillment are an unbeatable platform for Toys ‘R’ Us to reconnect with their fans while we introduce them to the ease and convenience of shopping at Target,” said Nikhil Nayar, senior vice president of merchandising, Target, in a statement. “By applying our capabilities in a new way with Toys ‘R’ Us, we can serve even more toy shoppers, drive new growth, and build on our toy leadership.”
“Our U.S. strategy is to bring back the Toys ‘R’ Us brand in a modern way through a strong experiential and content-rich omnichannel concept,” said Richard Barry, CEO of Tru Kids. “The foundation of that strategy requires the help of a retail industry leader and Target is the ideal retailer to support a new Toys ‘R’ Us shopping experience, which is designed to provide families with endless ways to discover, play and enjoy toys.”
Tru Kids announced in July that it plans to open two stores — one in Houston, TX and the other in Paramus, NJ — in time for the Christmas shopping season. The small store units — around 6,500-square-feet — are being developed as part of a joint venture with b8ta, a retail-as-a-service startup focused on providing consumers access to try new products before making a purchase.
The new stores are being designed to be highly interactive, giving kids and parents the ability to test products before they buy. The locations will offer new events and activities on a regular basis and include open play space. Brand stations will enable kids to learn through play using “STEAM” (Science, Technology, Engineering, the Arts and Mathematics).
- Get Ready to Shop These Fun New Toys “R” Us Experiences, Powered by Target – Target
- Target to Power Toys“R”Us Shopping Experience – Tru Kids Brands
- Is Toys ‘R’ Us just playing around or will Americans buy its new concept store? – RetailWire
- Toys ‘R’ Us prepares its American comeback – RetailWire
- Will Disney shops entertain guests inside Target’s stores? – RetailWire
- Will gains make believers of investors who opposed Target’s toy category push? – RetailWire
- Who will fill the retailing void left by Toys ‘R’ Us? – RetailWire
- No more playing around – Toys ‘R’ Us is out of the retail game – RetailWire
DISCUSSION QUESTIONS: What do you think Target will get out of working with Tru Kids to relaunch toysrus.com? Is this a smart way for Toys “R” Us to reestablish itself as a retail brand?