Toys R Us Opening For 87 Hours Straight Until Christmas Eve
By Anna Rose Welch, Editorial & Community Director, Advancing RNA
After reporting wider third quarter losses, the company is focusing on an “aggressive plan to fortify the rightful place of Toys R Us as the toy authority,” including online and omni-channel initiatives
The already stressful and competitive holiday season for retailers this year just got more stressful for Toys R Us, which reported more losses in its third quarter — and decided to operate marathon-style until Christmas Eve. The company reported revenue of roughly $2.5 billion for the quarter, down from $2.61 billion, citing that its “Big Book” promotional catalog, weak toy sales, and an increase in income tax expense were the primary causes of the company’s losses.
However, increasing competition has also caused the privately owned company to feel the pinch. Online retailers and discounters have been drawing more and more customers to their toy departments, leaving Toys R Us scrambling to improve its own online initiatives, offer more exclusive toys, and promise free layaway and a price match guarantee (though, the price match guarantee has also been a tactic adopted by big box retailers Walmart and Target, among others, this holiday season). Retail giant Walmart, in particular, charged in to the toy market early this year. In September, the company unveiled its annual holiday “Chosen by kids top toy list” and lowered prices on hundreds of dolls, action figures, and ride-on toys, among others.
In the face of this competition from Walmart, Amazon, and other retailers, Richard Barry, EVP and CMO of Toys R Us, says the company is working on an “aggressive plan to fortify the rightful place of Toys R Us as the toy authority.” In the fall, the company announced its intentions to adapt a “store-in-store” model and to expand its selection of tablets, education aids, party supplies, and construction toys. Omni-channel initiatives, including the increasingly popular “Buy Online, Pickup In-Store” and “Ship to Store” programs, were put in place and enhanced to ensure customers would get their orders even more quickly than they did in the past. Wish-List Kiosks and the company’s loyalty program ensure that customers have access to good deals and a quick shopping experience.
Omni-channel meets in-store merchandising.
The latest in its holiday offerings is a shopping marathon. Following Kohl’s announcement that it would be staying open for 100 hours straight until Christmas, Toys R Us jumped on the bandwagon and announced on Dec. 17 it will be keeping its doors open for 87 hours straight before Christmas. Locations nationwide will open Saturday at 6 a.m., and remain open until 9 p.m. Christmas Eve. Troy Rice, EVP of Toys R Us stores and services says, “With only eight shopping days remaining until Christmas, we are offering customers extended, uninterrupted time in stores, providing them the opportunity to shop whenever is most convenient for them.” The company also held similar hours in 2012, however, this year it will be especially important because of the shortened holiday calendar. This weekend is expected to be particularly important for retailers, as last-minute shoppers flood into stores. Snowstorms in the Midwest and Northeast have contributed to declines in traffic last week, analysts say, however as of Dec. 9th, only about half of shoppers had completed their holiday shopping, compared to the 56.5 percent that had completed it by Dec. 9th last year. It appears shoppers are still on the hunt for gifts — and Toys R Us is keeping the doors open for them.
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