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The Case For Convenience. How These Retailers Built Convenience Directly Into Their Brand Experience
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By now everyone knows that Toys R Us announced its closure less than 6 months after initially declaring bankruptcy in September 2017. Although that end may have been more related to debt than retail environment design, there are lessons all of retail can take from Toys R Us’s misfortune. And the good news is, other stores – both brand stores and multi brand stores –are really getting it right.
Incorporate Retail Experiential Design
Consumers drive the demand for experiential design in retail. That’s especially true of toys, where fun and magic are part of the formula. Toys R Us was known for offering a full variety of toys, but the experiences people tended to remember were the fruitless search for the last unicorn Fingerling.
Brand stores like LEGO, American Girl, and Disney successfully employ retail experiential design to create a destination and positive memories. Even FAO Schwarz, the venerable experiential toy store, is set to make a comeback. FAO Schwarz piloted a shop-in-shop concept last year in Bon-Ton stores, featuring iconic experiences like the 8-foot piano keyboard. They have since partnered with Hudson Group to bring their brand stores to airports. Hudson’s Michael Levy said, “Hudson Group is committed to delivering exceptional, one-of-a-kind experiences to our guests”. They felt the enduring brand would offer a unique environment for travelers.
Keep Introducing Innovative Design
One of the challenges of Toys R Us in recent years was upkeep and condition of the stores. Customers recognized that store fixtures and layouts had not changed, despite significant changes in customer behaviors and expectations.
The prosperous retailers, on the other hand, regularly re-examine their stores' atmosphere, the functional store layout, and the elements that influence their customers’ decision making process. Retailers that are always tinkering, such as Urban Outfitters, Target, and Ikea, provide perfect examples of adapting to changes in customer behaviors and expectations. Whether through small-format stores opening in urban areas catering to younger shoppers or reimaging the traditional store to emphasize certain product presentations and adding time-saving features. Retailers and brands that continually engage with its customers through retail design innovation are thriving.
Experiment with Personalization
While other stores looked for ways to incorporate personalization, Toys R Us maintained the feel of a warehouse environment with a vast inventory and lots of relatively un-curated choices. Particularly for a children’s retailer, the opportunity to create personalized experiences and products was lost amid the sea of products.
On the other end of the spectrum, M&M World provides a great example of how a brand store can incorporate personalization. By offering customers the chance to create candy with their own personalized colors, lettering, and even images, M&M World individualizes the experience. M&M World has hit upon way for a brand store to add value and meaning to a mass produced product.
At Quater20, we have helped brands like TaylorMade push personilzation with improved in-store brand spaces. By creating an immersive club fitting experience in TaylorMade’s new Performance Centers, customers can work with a specialist and find the right club for their needs, away from the bustle of the sales floor.
Find Ways to Stay Relevant
Where Toys R Us suffered setbacks in staying up with the times, other retailers have found ways to create authenticity. Millennials grew up on Build-a-Bear – the oldest were 16 and the youngest had just taken their first steps when the store launched its retail strategy in 1997. Build-a-Bear has maintained consumer interest over the years which has lead a 12% growth over the past 5 years in malls and other retailers. This is thanks in large part to developing partnerships with beloved brands like Star Wars, Super Mario, and My Little Pony. Now Millennials can purchase relevant, nostalgic stuffed animal for them while still appealing to their children. This arrangement creates multi-generational experiences that go beyond the youngest consumers.
There is a lot to learn from Toys R Us’s history. At Quarter20, we specialize in customized experiential retail design that touch on all of these aspects. If you are looking to refresh your retail experience or rethink your customer’s journey, reach out to the teamat Quarter20 to learn more.