We all knew something had to give. Toys "R" Us (NYSE: TOY) has been struggling mightily lately, but it has recently started an experiment in setting itself apart from its mighty competitors. It's got a few super kid-friendly megastores going under its Geoffrey store moniker.
It's as if the company read Fool Rick Munarriz's mind (or at least read his commentary) last November. He suggested that the best way for Toys "R" Us to win against low-cost archrivals Wal-Mart (NYSE: WMT) and Target (NYSE: TGT) would be to play to its own strengths -- that is, make toy shopping fun, entertaining, even a destination. (Apparently there's a word for this -- "retailtainment," according to a Reuters article yesterday.)
The megastore concept may be a little bit too "Wal-Mart," of course. The idea is to differentiate from Wal-Mart, and Toys "R" Us was already a pretty darn big toy store. What is the differentiating characteristic is that the stores selected for the experiment will now offer arts and crafts, haircuts, photo studios, party rooms, and other kid-centric perks, Reuters said.
Think jungle gyms and story hours. Also, frazzled parents who don't have the time (or the patience) to plan a child's birthday party at home can have one done for them, paying about $10 per child for a party that contains the works -- invitations, cakes, and games and activities.
The Reuters article said that there are four experimental Geoffrey stores and about 12 stores that incorporate elements of Geoffreys into the Toys "R" Us venue. The stores are, so far, located in North Carolina, Mississippi, Wisconsin, and Texas.
One can only hope that this Toys "R" Us trend will spread. It's got to put the joy back in TOY.
Further, what with the troubles that have befallen the FAO Schwarz, KB Toys, and Zany Brainy stores, leaving those stores either closed or crippled, now's the time to act. If Toys "R" Us can get its act together, there's likely a lot less competition than there was this time last year, with the exception of the mom and pop shops, which are likely in sink-or-swim mode in the current environment.
With lots of competition out of the way, it's time to take back the toy box. If Toys "R" Us can get itself back in play, those investors who have weathered these tough times for toys will feel like kids again.
Read more about the travails of Toys "R" Us:
You sank my battleship! Do you love games of strategy or chance? When somebody mentions the word "monopoly," do you think of the game where everybody always wants to be the race car? Talk about the latest and greatest with other Fools on the Card & Board Games discussion board.
Alyce Lomax does not own shares of any of the companies mentioned. Even though she's a writer, she was never as good at Scrabble as one might imagine.
Terms & Conditions
RSS Headlines
Fool UK