Toy Box turns up the traffic - Toy Box/online - Toys "R" Us

DSN Retailing Today, Oct, 2003 by Doug Desjardins

Toys "R" Us has a knack for thinking outside of the box, and its new retail venture embodies that approach both literally and the retailer began opening new "Toy Box" departments in super markets owned by the 2,300-store Albertsons chain and will have 1,100 open by next month.

The new initiative is geared to extend the Toys "R" Us brand into new areas and generate toy sales outside of the holiday season when the company does the bulk of its business.

"The logic is, [moms] go to the grocery store a hundred times a year, so wouldn't it be terrific if we could put a small selection of Toys "R" Us product into that environment," said Francesca Brockett, evp of strategic planning and business. "We really believe that it immediately acts as a basket builder for our partners and over time it helps to generate traffic."

The Toy Box concept started as a test last year at Albertsons' Jewel-Osco stores in Chicago. The departments generated enough sales to convince both chains the concept would work in other parts of the country.

While Toy Box departments vary in size, most average about 700 square feet and feature a mix of branded and non-branded product, The mix includes approximately 300 different toys with the majority priced under $25, a strategy designed to encourage impulse buys.

The departments will give the chain a vehicle to expand its footprint and go into areas where it has no stores. "There's certainly some exposure in order for Toys 'R' Us, and this provides them with a way to increase their square-footage," said analyst Margaret Whitfield from Bream Murray. And they'll provide Toys "R" Us with customer traffic it can't generate in its regular toy stores year-round. Families in the U.S. visit supermarkets up to 95 times per year compared to a handful of visits to toy stores.

"No retailer in the world gets the traffic supermarkets get," said analyst George Whalen. "And there's lots of impulse buys and lots of kids, so it's a great idea."