Imaginarium proves to be smart buy - Toys "R" Us - Imaginarium Toy Center

DSN Retailing Today, Oct, 2003 by Doug Desjardins

When Toys "R" Us purchased the Imaginarium Toy Center chain in 1999, it was a classic case of good timing. Demand for learning and educational toys was just starting to take off, and the 41-store chain was a market leader in the category.

Since then, learning toys has become one of the fastest-growing sectors in the industry, and Toys "R" Us has made Imaginarium a centerpiece of its revamped stores, Imaginarium departments were part of the chain's Mission Possible remodel launched in 2000, and they're now in all 681 of its U.S. stores to complement its 37 stand-alone outlets.

While the stand-alone stores and in-store boutiques give Toys "R" Us cache in a booming sector, they're also driving customer traffic and providing an interactive shopping experience for consumers.

"Opening Imaginarium boutiques in all their stores and putting them in the center was a very good move," said Dr. Stevanne Auerbach, an industry analyst known as Dr. Toy. "They picked up on the right concept at the right time."

And they're also helping Toys "R" Us bring customers into stores 365 days a year, one of the retailer's primary goals going forward. Toys "R" Us chairman and ceo John Eyler said the type of toys featured in Imaginarium have a year-round appeal to kids and parents.

"A learning business is a 12-month-a-year business," said Eyler. "People want to develop and do the right thing for their children 12 months a year and the Imaginarium store-within-a-store has become another element for developing seasonless traffic."

Of course, Toys "R" Us has plenty of company in the learning toy arena. Wal-Mart began clearing space on its shelves two years ago to accommodate new products from companies like Fisher Price, V-Tech and LeapFrog. But Toys "R" Us has made the boutiques destinations where customers and their kids are encouraged to hang out and test new products with the help of on-site "toyologists."

And the company has managed to incorporate a name brand into its own almost seamlessly. "From the customers we've talked to, there's been no erosion of Imaginarium's branch perception since they were integrated into Toys 'R' Us stores," said toy industry analyst Chris Byrne.