TOYS ‘R’ US CANADA STILL IN THE RETAILGAME

SET FOR MAKEOVER IN WAKE OF U.S. PARENT’S DEMISE

Toys ‘R’ Us Canada is No. 2 in toy sales behind Walmart Canada Corp., she said, but the toy industry continues to grow despite some industry worries about the proliferating avenues of activity that now compete for kids’ attention compared to the 1970s.

“Kids are still playing with toys,” Liem said. “They are busier kids than the previous generations. They fit in sports, they play with toys, they are gaming, they watch entertainment, they have mobile devices and they (use computers).”

The Canadian toy market has been growing by about $100 million a year on average since NPD began tracking it in 2014, when the market was worth $1.7 billion. Sales rose three per cent last year to $2 billion.

Liem said the Canadian arms of global toy distributors are also keen to ensure Toys ‘R’ Us Canada stays alive, and are negotiating prices that reflect the retailer’s size in the market rather than the scale of its prior global parent.

“When you think of how much retailers invest in marketing and advertising and creating events, it is valuable to the manufacturer to have their brands shown in the stores,” she said.

Liem also points out that retail stores remain a major distribution point and “massive marketing platform” for toys, and they are a way for manufacturers to test and learn how products are received and get insight on how to market in digital channels.

“Consumers come in, they see all the big displays of their brands. If that went away, that would be losing a whole lot of eyeballs.”

As Teed-Murch looks to the future, she sees a possibility for Toys ‘R’ Us Canada to open stores as small as 5,000 square feet in towns that might have been deemed not big enough for one of the retailer’s 35,000-to-40,000-squarefoot box stores in the past.

“As a smaller company now, I liken (the difference) to that of a speed boat and a yacht. We are able to make swift decisions about important factors that impact our business, and really cater to a rapidly changing retail marketplace.”