Toys discounters in pitched battle; Toys 'R' Us, Jamesway, Hills launch early catalogs

Discount Store News, Nov 7, 1994 by Teresa Andreoli

NATIONWIDE DSN REPORT -- Toys "R" Us may be the only toy superstore chain left, but discounters have begun to crowd the toys giant's turf in the all-important fourth quarter selling period. Retailers this year made a point of pitching their prices and hottest toys selection early in the cycle.

TRU fired the first salvo Oct. 9 with the release of a 55-page, pre-holiday bonus book, its first-ever pre-season toys catalog. On the same day, the Midwestern regional chain Hills inserted its toy circular into Sunday newspapers, began running local TV spots, and preparing its stores for the holiday season.

East coast regional discounter Jamesway published its first-ever toys catalog, a 64-page book, in mid-October.

Some of Wal-Mart's national TV spots last month pushed toys specifically--quite a departure from the retailer's general, institutional TV advertising.

Several factors have played into the early marketing rush, not the least of which is the race for a greater share of the season's sales and profits.

Fueled with myth-breaking statistics that suggest 40% of female shoppers finish holiday shopping by mid-December (drawn from American Demographics magazine), TRU ran the presses early. Those retailers with October/November programs also capitalized on an early Hanukkah rush; the Jewish holiday begins the Sunday after Thanksgiving this year, nearly a month before Christmas and the big shopping frenzy.

Allowing layaway purchases was another reason for the early push. The Jamesway catalog encouraged layaway plans six separate times within its toys booklet. Layaway earned front cover text in the 1993 Hills book.

"Toy's 'R' Us has kick-started the whole selling season with its pre-holiday book," said Donna Gibb, a spokeswoman for toymaker Mattel. Over the past few years, retailers and manufacturers have attempted to condition consumers to start holiday toy shopping earlier in the season, she noted.

"We knew it was going to be a competitive year so we got started early," said Susan Sprunk, vp, marketing and advertising for Hills. "The circular was the backbone [of the marketing strategy] ... but instore signage is even more important. Hot toys at low prices--that creates excitement and elevates toys' importance within the stores," she said.

The '94 Hills toys catalog will be different from its '93 book, which like TRU's, has been widely imitated. The upcoming Hills' catalog will have a new merchandise section that will focus on learning-age activities such as learning toys designed to familiarize children with computers, Sprunk said.

"If we can give something that's new and fresh, the happier the consumers will be and the more they'll buy," she commented. Hills shoppers are aware of the company's EDLP strategy, said Sprunk, and those who shop early can choose from the best assort-ment. Additionally, layaway allows parents to keep gifts in the store and away from the children, which helps alleviate the search for the best inhome hiding spot, she added.

Kmart has opted out of a toys catalog, but it created a unique spin to attracting toys shoppers this year with a program it calls "Toy Mania." The four-week program, which began Oct. 30, highlights a different toys category each week. These include: TNT (Totally Now Toys), big-bulk toys in week one; HOT (Hands-On Toys) such as activity sets in week two; BIG (Build It Great) toys such as construction toys in week three; and TLC (Totally Lovable Characters), plush toys and dolls in week four.

Also, Kmart teamed with Little Caesar's, its in-store restaurant partner, in a sweepstakes that will award prizes, including $1,000 shopping sprees. Like the toys catalogs, Kmart's Toy Mania program includes wish lists, find-it puzzles and find-the-gift hunts and an in-store banner program.

But it's the catalog, a most popular vehicle this year for retailers, that is grabbing shoppers' attention. And so far, the publications have been modeled after TRU's 1993 book, with slight modifications.

Jamesway's catalog took much the same shape as Hills' 1993 toy book and carried some elements found in the TRU catalog. With an illustrated cover similar to Hills' front page, Jamesway labeled and divided its toys merchandise into sections such as preschool, girls, boys, crafts, video and others, but most notably carried an expansive sporting goods section.

Both Jamesway and the 1993 Hills book presented a one-page spread of coupons.

Hills capitalized last year on personalizing its book, a feature TRU chose not to explore. Hills promoted its one-day, instore Santa photo session, added a children's wish list sweepstakes, and inserted two pages of kiddy activities such as a modified Ad-Libs/fill-in-the-blanks story.

Jamesway took similar kidfun steps in October by including a coloring page and a maze, and by promoting a "Get your very own Christmas letter from Santa, Rudolph and Frosty" program.