After KB

December 17, 2008

After KB’s demise, will malls become a wasteland for the toy industry or will other toy retailers move in and create new growth? KB has been the sick man of the toy industry for a very long time. It’s been a bit like having a beloved uncle on life support that kept fighting back but you knew it was only a matter of time. Well, that time came and KB is gone. No more trips to Pittsfield, MA.

There were some terrific people who worked in the KB offices and stores and we all regret the loss of their jobs and hope to see them in new positions in other organizations very soon. They were our friends as well as business associates.

KB and its management certainly fought the good fight but a business model originally predicated on highly trafficked malls ultimately failed as that traffic went elsewhere. In the final analysis, KB was ultimately never able to overcome the downturn in mall traffic and the change in that traffic from families to adult women, teens and tweens.

There will now be no national toy presence in U.S. shopping malls. Sure, one can find the Macy’s / FAO Schwarz store within a store, Calendar Club and the Build A Bear Workshops, but these are very specialized and don’t offer the true toy store experience of being able to choose from a broad variety of products.

This absence challenges all of us to ask some hard questions:

Was KB all this time taking up space in the mall that could have been better utilized by a toy retailer with a better concept?

Is there a toy business model suitable for malls?

What company or companies can and will replace KB?

Will mall based department stores finally go back to dedicating full departments to toys?

Will retailers currently engaged in marketing to teens and tweens expand their offerings?

This industry needs as many alternative retail outlets as possible. It does not need to be a national chain. It could be a series of excellent regional retailers or one off independents. Whatever happens, it is in everyone’s best interests (and that includes malls) that toys return to the malls and return soon.

Posted by Richard Gottlieb on December 17, 2008 | Comments (5)

November 27, 2011

In response to: After KB
Indy commented:

Short, sweet, to the point, FREE-exactly as inofmraiton should be!

November 25, 2011

In response to: After KB
Charlotte commented:

Wow, your post makes mine look feelbe. More power to you!

December 29, 2008

In response to: After KB
NateS commented:

I remember going into KBToys as a kid, and marveling at the selection. I remember re-entering it as an adult, and being disappointed. From my standpoint, your observation regarding the lack of a focus change is quite valid. I also think that many toy and game stores suffer for lack of proper marketing to customers who are on premise. Where are the shelf-talkers? Guided demonstrations? How are you educating customers about the value of the product? I once purchased a magic trick kit purely based on the demonstration. A lot of customers have come to see that a game or toy will tend to hold attention for a limited period of time, and its that period of time that they are truly investing their money in. If there is to be a successor to Toy Store chains, this is the lesson learned.

December 25, 2008

In response to: After KB
Jacob Bryde-Nielsen commented:

There is definitely a market for toy stores in malls. Why not? Everybody is looking for the good offer and can be dragged by an impulse product. It is a matter of assortment and price structure. Maybe it could be a mini Toys R us. with a limited selection and with price ranges from USD1,00-USD50,00. People and especially families spend a lot of time in the malls. It is convienient. No parking problems. All the shops you need around you. The right concept definitely could make it a profitable business

December 24, 2008

In response to: After KB
Peter Laudin commented:

Hard questions? Hardly! Goodbye to KB and good riddance. Toy's R Us... you're next. And the mall as a purveyor of hard goods...soon to follow. Quote: "People who don't learn the lessons of history are doomed to repeat it." Wal-mart taught the lesson... KB didn't learn it. Remember, to compete with a Wal-mart, drill down to a niche and provide better service. "Toys" is not a niche. 'Collectible Dolls,' 'Model Railroad Trains', 'RC everything,' that's a niche. And do you know how easy it is to set up a niche store and succeed? The internet. The mall is dying. The Internet is booming. The future of the toy industry is online.