• Toys R Us UK stores rejuvenation is the key to future growth

        • While Toys R Us hopes that shutting 26 stores, as part of a company voluntary arrangement (CVA), can stop it falling into administration, the only way it can save itself is by rejuvenating the rest of its tired portfolio, according to data and analytics company, GlobalData.

          E-commerce has been a threat to Toys R Us with the online toys & games market growing 62.8 per cent over the last five years and now representing 36.8 per cent of sector sales in 2017. Toys R Us has not completely neglected online and currently offers free delivery over £29.99 and free click & collect in 29 minutes. However, Amazon and Argos offer faster, more convenient and affordable delivery options.

          While online has grown in prominence, toys & games retailers can still prosper by offering an exciting experience for children.

          Fiona Paton, Senior retail analyst at Globaldata said, ‘’as more toy sales move online Toys R Us has struggled, but other toy specialist chains have managed to steal market share, with The Entertainer and Smyths Toys both rolling out stores and delivering growth. Additionally, the market has remained steady in toys & games growing 16.8 per cent over the last five years, meaning Toys R Us’ position is not one of external market conditions but rather its own strategy. The retailer now has to make crucial and expensive investments in adding ‘retail theatre’ to its stores and giving consumers new reasons to visit if it is to continue operating in the UK.’

          “Toys R Us’ large warehouse stores were once exciting as children had never been able to see such a wide range of toys in one place but online shopping now offers a more convenient way to browse such a wide selection of toys. Toys R Us must give families a new reason to enter stores, whether this is through opening new convenience formats to benefit from higher footfall or investing in better visual merchandising and entertainment (in a similar way to Hamleys on Regent Street) in old legacy stores to reinstate its original destination status.’’

          Toys R Us has also struggled to compete on price, having made a loss in seven out of the last eight years. As a result, price matching aggressive competitors is very difficult when there is no margin left to sacrifice. With other retailers offering lower prices as well as a better instore experience or a stronger online service, consumers have little motive to choose Toys R Us.

          Fiona added, ‘’if Toys R Us is to survive, its focus must be on creating an exciting instore experience to bring it in line with competitors on the high street.’’

        • Stay up to date - Click here and register for FREE OEN online membership and enjoy unlimited access to a host of benefits including the exclusive members area of the website, downloadable business tools, current and back issues archive, priority breaking news alerts, weekly e news summary and the OEN app

        • Related Articles

        • 91 per cent of consumers can recognise a brand from colour alone

          91 per cent of consumers can recognise a brand from colour alone

          Friday 15th Dec 2017 by clareb
          Colour has the ability to communicate a feeling immediately. Whether that feeling is passion for red, serenity for green, or festivity when combining the two; it is not difficult to see why it is so important to choose the right colours when it comes...Read More...
          Inadequate delivery options threaten retailer Christmas sales

          Inadequate delivery options threaten retailer Christmas sales

          Wednesday 13th Dec 2017 by clareb
          The UK’s top retailers may be jeopardising 30 per cent of their Christmas sales due to limited delivery options, according to a new study. The research, carried out by ecommerce and digital agency Visualsoft, found that 17 per c...Read More...
          Unibail-Rodamco to buy Westfield

          Unibail-Rodamco to buy Westfield

          Tuesday 12th Dec 2017 by clareb
          An agreement has been set out by European commercial property company, Unibail-Rodamco, to add 35 shopping centres to its portfolio, gaining from Westfield’s extensive number of locations, including Westfield Stratford City and Westfield London...Read More...
                • About Us

                  OEN is the leading source of business news and information for buyers of office equipment, supplies and services within mid tier and up sized organisations. Our multi-platform approach delivers relevant, engaging and focussed content via our main printed magazine, bespoke guides and supplements, website, digital editions, apps, and newsletters with an unrivalled reach across the industry. A highly trusted and respected brand for many years, the print version of OEN last year celebrated its Diamond anniversary.

                  For our latest Media packs and more details on our range of services click here

                • View Latest Issue