Why Sears, Barnes & Noble, Borders and Spencer’s Gifts are jumping into the toy business

August 11, 2009

In my last blog I wrote about the decisions by a number of major chains (Sears, Barnes & Noble, Borders and Spencer’s Gifts) to get back into the toy business or to deepen their existing departments. These announcements coming within weeks and months of each other, speak to a movement in toy retailing that is more than a coincidence.

So, let’s analyze why these retailers have decided to get serious about the business of toys:

The toy industry has become under stored. After years of chains closing and downsizing there are no longer enough stores selling toys. It’s a good time to get in.
Existing mass market chains have replicating product mixes. The large percentage of the toys a consumer finds in Toys R Us, Wal-Mart and Toys R Us are the same. That’s pretty boring. There is an opportunity for retailers offering more than the standard television advertised fare.
Book retailers like Barnes & Noble and Borders recognized that their customers are thinkers and thinkers want games, puzzles and toys that challenge their brains and those of their children. And oh yes, you can make money selling toys.
Sears recognized that they need the kids back in order to get the adults to come back. Children help determine where a family shops and Sears has been struggling for years with a male dominated consumer base.
Spencer’s Gifts saw that the demise of KB created a major opportunity in the malls. Spencer’s was there already with its Halloween shops so why not stay put for a few more months.

Are there other reasons? Certainly there are. I am interested in hearing what you think they are. Let us know.

Posted by Richard Gottlieb on August 11, 2009 | Comments (4)

November 27, 2011

In response to: Why Sears, Barnes & Noble, Borders and Spencer’s Gifts are jumping into the toy business
Marlee commented:

Walking in the presence of gintas here. Cool thinking all around!

November 25, 2011

In response to: Why Sears, Barnes & Noble, Borders and Spencer’s Gifts are jumping into the toy business
Xandy commented:

Of the panoply of wbeitse I've pored over this has the most veracity.

August 12, 2009

In response to: Why Sears, Barnes & Noble, Borders and Spencer’s Gifts are jumping into the toy business
Toy Buzz commented:

Another consideration for the "book" stores is that their other businesses - book and especially CD sales - are down, and they need a way to make up the loss. I do worry that these moves will further hurt independent specialty retailers, as more manufacturers that, once upon a time, would never sell to mass, now sell to B&N, Borders, Spencers, etc. Yes, 500 stores = mass, despite what some vendors might claim. Are we robbing Peter to pay Paul, giving formerly specialty-loyal customers another big box buying option?

August 12, 2009

In response to: Why Sears, Barnes & Noble, Borders and Spencer’s Gifts are jumping into the toy business
Tim Walsh commented:

Well done as usual, Richard. This is an exciting opportunity for us! As a game designer and promoter, another factor I see contributing this retail trend is a response to the recession. When our economy is down, sales of board games go up. There is an historical precedent to this phenomenon. Monopoly came out during the Depression and Trivial Pursuit hit it big during the recession of the early '80s. When people spend more time at home, they rediscover that there's fun just waiting to happen in their game closet. And it's not just the tried and true games that get played. People are discovering new games as well. According to the market-research firm NPD Group, board-game sales in the United States climbed 6 percent in 2008 to $794 million, while overall toy sales were down 3 percent. I predict this trend will continue as we continue to “staycation” and “nest” as a nation.