A month ago, Toys “R” Us Inc. filed for chapter 11 bankruptcy. This means that a debtor is given time to restructure their debt in order to gain a fresh start as long as they fulfill their plan of reorganization. A child named Bradley sent Toys “R” Us $3 in a box to help them save their store. Bradley’s actions are a strong testament to the love that people have for the iconic Toys “R” Us brand. This kind of constant brand loyalty is what will restore the Toys “R” Us brand to its former glory. One major problem Toys “R” Us has is consumers think they can receive better prices from Wal-Mart Stores Inc., and they have recently shifted their focus from brick-and-mortar stores to online retailers like Amazon.com Inc. Toys “R” Us has been gaining increased media attention after filing for bankruptcy, which could in turn help them to gain more shoppers this coming holiday season. Currently, Toys “R” Us is offering in-store experiences to draw in children and millennial parents who “believe experience is really important.” They created an app that children can use to play games in-store that will unlock in certain areas of the store. Children can compare their scores with other children playing near them. The app also can be used in tandem with the Toys “R” Us catalog to allow children to further interact with the catalog information. The games that children play in-store and with the catalog will collect data and show what toys children want and find important. The app will also give coupons as you shop. They will host a “Parent’s Night Out” with “personalized shopping services, wrapping services, and refreshments” in order to create stronger community ties. Toys “R” Us stores are implementing play labs where children can try new toys. Toys “R” Us has a new website which gives shoppers better gift suggestions and expectant parents a way to find the best items for their lifestyle. They are also going to work to advertise their price match guarantee.
As someone who once loved going to Toys “R” Us, when I Christmas shop for a toy, Toys “R” Us is typically the first place I check. Toys “R” Us has stood the test of time and retained much brand loyalty. Now they are evolving their current technology and marketing strategy to keep up with the times and better their sales. Children are growing up in an age of technology; it is all they know. Toys “R” Us will be able to draw in new customers with the prospect of combining games and technology through their in-store experience app. This will intrigue a new generation of shoppers and make shopping a more enjoyable experience for children accompanying their parents during holiday shopping trips. Children using the app will definitely find a toy they want for themselves. Media attention from the bankruptcy filing has reignited consumer interest and focus on the brand. Even though this is negative news, it has placed a new spotlight on Toys “R” Us who has been losing consumer attention in recent years. There is a typical brand perception that Toys “R” Us tends to be more expensive than Amazon and Walmart who promote their lower costs and desire to give customers the best deal. Toys “R” Us will be able to find success by promoting the price function to show consumers that they can compete with other stores in this area. It will be interesting to see if values of brand loyalty and a price match guarantee win out over the perception of a lower price and online convenience.
By: Megan McKee
https://www.wsj.com/articles/yes-toys-r-us-is-still-open-for-business-1509329281
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