Ames positions toys as destination shop - includes related article on Toy Tips Magazine

Discount Store News, Nov 18, 1996 by Laura Liebeck

Rocky Hill, Conn. - Ames is taking its toy program "to infinity and beyond," to quote the now-famous computer-generated Buzz Light-year character, star of Disney's hit movie "Toy Story."

The regional discount store chain, with 303 stores along the East Coast, is committed to making its toy program a star performer in the store and a competitive weapon in the discount store arena.

As a result, Ames reset the toy department in its latest prototype, which will be rolled out chainwide within the next two to three years. The new set, covering 1,850 sq. ft., with its Holiday program, positions toys as a destination shop in one of the store's four "soft" corners, complete with major presentations of Barbie - a 40-ft. program now called Barbie World - Fisher-Price, Little Tikes, Lego, games (doubled from last year to a minimum of 48 linear feet), plush and action figures, among others.

"We wanted to make the toy department a focal point, positioning it adjacent to the children's quad," said Dave Covitz, vp, gmm. He noted that the children's apparel area is located across the aisle from toys, making the area a powerful statement to families with children.

For Covitz, the new toy set design is "organized excitement." The core of the department is the corner, where eyes are drawn from the main power aisle down to the Barbie World display at the rear. Shoppers move around the racetrack, passing short, easy-to-navigate aisles. As the customer rounds the corner, aisle stackouts invite them into the department. At the time of the DSN visit, 101 Dalmatians plush toys, Crayola Kids Backpack Bears by Gund and Toy Story products were prominently displayed.

The department fans out from the main aisle, giving shoppers a panorama view of the toy assortment. Once in the department, shoppers see a Toy Story endcap, a large crafts program by an assortment of vendors, dolls, games, action figures, die-cast cars and Barbie.

Barbie takes almost the entire back wall of the toy department, and games occupies a sizable portion of the other wall. Ames is emphasizing Milton Bradley games in its new set, the result of an improved game market. "Hasbro's game division has been the foundation of our boxed game division, and Star Wars and Batman figures add excitement to our action figures," said Mark Kaplan, divisional merchandise manager.

Signs, even for Barbie, have been kept to a minimum "to avoid sign pollution." Covitz pointed out.

Endcaps are emphasized. "Every endcap is a story, so it's not just stuff on an endcap. It has meaning to customers," said Kaplan, noting the Toy Story endcap.

The reset is proving very successful for Ames. Customers have said that they can more easily find the merchandise they're shopping for, and the results are turning up in improved merchandise turns, margins and sales. all of which have increased significantly with the new set, said Covitz. declining to be specific about the results. He noted that Ames will "exceed our numbers this year."

Ames offers three toy sets depending on store volume and size. Ames stores range from 26,000 sq. ft. to 110,000 sq. ft.

The biggest aspect of the new toy department prototype is the decision to focus on everyday toys.

"We're looking for singles, some doubles and an occasional triple," added Kaplan. using a baseball metaphor to explain the company's philosophy in toys. Kaplan explained that the toy department was set so that it performs well every day, not only when hot toys ignite the market. The upcoming 101 Dalmatians program based on the new movie will be one of Kaplan's "triples," Covitz said.

As a result, Ames has minimized its reliance on hot toys - Toy Story and 101 Dalmatians, for example, aren't plastered all over the department, but merchandise and support are obvious. The Hunchback of Notre Dame, which disappointed many retailers, has one endcap of markdown goods.

As a way to build the business and drive sales on an everyday basis, Ames is stressing collectibility with such programs as die-cast cars. including one of its own creations. and scaled vehicles.

"We're taking advantage of the die-cast phenomenon," said Kaplan, with such names as Johnny Lightning, Racing Champions and Ames' own Premier Classic, an eight-sku die-cast set program priced from $5 to $20.

Kaplan and Covitz said that they "tagged" collectors in toys as a result of the down side in Power Rangers. They created an exclusive Ames imprint, Road Tough,. which consists of one-eighteenth scale vehicles with movable parts. The line includes 12 vehicles, which will change periodically to enhance collectibility.

The same approach is being taken in action figures. Covitz and Kaplan said. Their aim is to keep customers coming back by offering them continually updated assortments. To keep the department looking organized and well stocked. Ames initiated a peg marker program. Now peg hooks in this area are identified by action figure characters such as X-Men, Batman, etc. This simple ID program permits store personnel to fill pegs more easily by grouping themes instead of specific items. Customers also seem to find the merchandise easier to locate.