Child World plans to expand prototype format - toy store chain

Discount Store News, March 12, 1990 by Tony Lisanti

Child World Plans to Expand Prototype Format

FRAMINGHAM, Mass. -- Child World has announced plans to remodel at least nine stores this year to test the viability of its "revolutionary" new store of the future.

"We need to develop a new and exciting store that will differentiate ourselves from Toys `R' Us and will yield increased sales with fewer sku's and less inventory," said Peter Hayes, president of the 174-unit toy chain, based in Avon, Mass.

The prototype store, which was quietly opened in Framingham during the past Christmas season, is a dramatic departure from the narrow aisles and high stock traditionally found at toy chains. The result is a brighter, more open and more accessible store with a new color scheme, new fixtures, wider aisles, revamped adjacencies in addition to power vendor-designed product displays.

"Our typical assortment ranges from 15,000 sku's to 18,000 sku's. The prototype has 8,000 sku's. In fact, we have many categories with a high reduction in sku's, yet sales are a greater percent of the store business because of the method of display and location of the product," Hayes explained.

The traditional long and high gondola runs have been redesigned into the shape of a cross (or "quad" fixture), with merchandise reclassified into "Worlds" displayed on each of the four sides. For example, the "Girls Block" was divided into dolls, fashion dolls, and Let's Play House. The "Boys Block" was divided into action figures, cars and trucks, and hobbies. In addition, vendors developed enclosed product displays (18 inches high by 48 inches wide) in several subcategories including Lego and Barbie.

"Lowering the gondolas [now 5 feet high] was a bigger hit with customers than we expected," said Hayes. "A customer is now able to stand at the entrance of each `World' and view the entire assortment. Wide aisles through each department provide easy flow to other areas."

Several new departments were added including: juvenile apparel, a 1,000-square-foot department with basic infant and toddler clothing; the Disney Shop, featuring an assortment of Disney clothes and toys; and porcelain dolls.

Redesigning Departments

In addition, several other departments were redesigned and relocated. The electronics area was redone as a separate enclosed department to improve security. New displays and fixtures were introduced for video game hardware and software, computers and videotapes. The juvenile furniture and accessories department was renamed Baby World and was moved to the rear center of the store. In the plush department, separate bins for each kind of animal were created to improve presentation and backup stock.

Another key consideration for the prototype's design, explained Hayes, was to make it more appealing for mothers and their children. A kid-size door was added to the entranceway, child care tables were added to rest rooms, infant seats were added to shopping carts, and small rides and a popcorn cart were added to the front of the store.

A new color scheme and a graphics were added throughout the store.

Hayes said sales have been "strong" since the prototype opened but he did not go into specifics.

"We still have many formidable challenges ahead, including learning how to properly operate and replenish a store of this type," Hayes said. However, he is confident that this "store of the future will lead the company into the '90s."

Overall, about 12 stores are slated for complete remodels during '90, 75 percent of which will be converted to the Framingham prototype. Also, about 10 to 15 new stores will be opened during the year with most of them using the new format. A comparable expansion plan is projected for the years beyond 1990.

Hayes would not disclose specific locations scheduled for renovation or specific markets slated for new stores. But he said the new stores will be clustered within existing markets.

At presstime, Child World had not released fourth quarter sales results. As of the third quarter ended Oct. 28, 1989, net sales rose a modest 2.1 percent over last year, from $154.2 million in 1988 to $157.3 million last year. The net loss for the third quarter was $4.1 million, compared with last year's loss of $3.3 million. According to Hayes, the fourth quarter generates over half of the firm's sales and all of its earnings.

PHOTO : Colorful hanging signs demarcate the new Baby World section, which contains juvenile

PHOTO : furniture and accessories.