Kids "R" Us on expansion kick, with new enlarged prototype

Discount Store News, Jan 7, 1985

PASSAIC, N.J. -- Kids "R" Us is on the move after a developmental stage that lasted a year and a half.

This year the chain plans to roll out a new expanded prototype and triple its store count. Some of those openings are expected to push the chain into the Philadelphia market for the first time.

Parent company Toys "R" Us is holding to its policy of not announcing new store locations far in advance. But, industry watchers say the opening last fall of a store southwest of Philadelphia, in Deptford, N.J., positions the now 10-unit kids' wear division to tackle the Philadelphia market and fill in southern New Jersey this year.

The other nine Kids "R" Us stores are in New York City suburbs in northern New Jersey, Rockland County and Long Island, N.Y.

The openings of the existing units--two in 1983 and eight last year--gave Kids "R" Us time to evolve a format built around high service levels, a broad selection and an innovative shopping environment as well as discounted prices on branded goods, explained Michael Searles, president of the chain.

Although Criticized from its debut in August of '83 for spending too much on presentation and ambience to make it as an off-pricer, the chain has stuck with its original formula.

In the new prototype stores, unveiled late last year in Union and Totowa, N.J., the initial format is carried forward. Departments have color-coded carpeting and tags: purple for girls; blue for boys, and green for infants/toddlers. Shoes and a portrait studio complement the apparel mix. Wall space around the store holds games that tell future occupations of kids or read their moods. In the back a playroom has toys for the children to play with.

This latest format of Kids "R" Us is aimed at answering customer feedback from the earlier stores, Searles explained. "They wanted narrower departments and more aisle space." Changes made in the prototype include: * Space was increased from 15,000-20,000 sq. ft. to 25,000 sq. ft. * Banks of three video monitors in big girls' and big boys' departments play music videos rented from MTV. Now, instead of only catering to small children with games, the stores "are addressing those who look to the young men's and junior market for direction," Searles said. * To make moving through carpeted departments easier, a bright orange race track aisle replaces the single aisle in other stores. * In presentation, eye-level illuminated color posters replace mannequins to give a real-life illustration of fashion featured on grid displays. * More electronic amusements have been added throughout the store such as a talking clock, a talking scale that looks like a clown and a laser drawing machine. The sci-fi-oriented laser machine was brought in to appeal to the older kids, Searles pointed out. * The Playroom in the back of the store was expanded and jazzed up with relief graphics including a huge Cracker Jack box and popcorn box. * The checkout area was also dressed up with wall graphics showing kids painting the store logo on one wall.

The newest format was identified as the model for future Kids "R" Us stores by Toys "R" Us president Charles Lazarus, who tagged the look "third-generation" Kids "R" Us.

Reviewing the evolution of the newest look, Searles said that "first-generation" Kids "R" Us stores opened in mid-'83 and early '84 in Paramus, N.J., Carle Place, Nanuet and Brooklyn, N.Y. Those stores were 15,000000 to 17,000 sq. ft. with a single aisle and deep departments, he said.

"Second-generation" stores opened last year in Wood-bridge, Livingston and Watchung, N.J., Searles continued. Those stores were larger, but still had the single-aisle format. In addition to adding space in those stores, presentation refinements were made such as moving accessories out from behind glass cases to open grid walls.

Kids "R" Us doesn't appear to be saving time or money with its newest presentation programs. Although the chain wanted to appeal to older kids with MTV videos, it wouldn't just tune into the station because some videos might be unsuitable for children. So the chain rents individual tapes from the station and uses store personnel to keep switching tapes.

Setup Is Refined

By substituting color photos for mannegquins, the chain replaced the labor-intensive task of dressing mannequins with a more involved program. The chain arranged to photograph employees' children in merchandise to be featured on at least 18 different displays and reshoot photos so displays can be changed every three weeks.

In-store service is still a priority at the off-price chain, with at least two salesmen in each department, according to Searles. A visit to the Totowa store proved him right.

The chain's emphasis on brands hasn't changed either. Many critics had expected the chain's supply to dwindle as competition pressured the manufacturers to keep goods out of the discount format. But in Totowa last month OshKosh, Fisher Price, Carters, Health-Tex, Ocean Pacific, London Fog, Gitano, Marimekko, White Stag, Izod and Danskin were represented in full size ranges and in coordinate sets. According to one chain executive only about 6% of the merchandise in Kids "R" Us is imported.