CEO returns to her retail roots in Kitchener store
Out from under the thumb of U.S. parent company, Canadian Toys ‘R’ Us looks at growth again
KITCHENER — Here to play, here to stay.
That’s the message Toys “R” Us Canada president and chief executive officer Melanie Teed Murch is sharing on a crosscountry tour, eager to put any lingering concerns about the chain’s future to rest.
“It’s definitely been an uphill battle,” she admitted during a visit Monday to the Kitchener location on Fairway Road. “It’s been a very difficult 10 months.”
It’s a tumultuous period that saw the Canadian arm go into bankruptcy protection alongside its U.S. parent, and ultimately resulted in the shutdown of all stores in the United States and the United Kingdom. Locations in Australia are next to be shuttered.
But it also brought a saviour for the Toys “R” Us and Babies “R” Us brands in Canada in the form of Fairfax Financial Holdings Ltd., the Toronto-based holding company whose retail portfolio includes Sporting Life, Golf Town and Recipe Unlimited (formerly Cara Operations) and its numerous restaurant brands.
Fairfax’s reported $300-million deal brought Toys “R” Us Canada under Canadian ownership and brought a palpable sense of relief to its 4,000 employees, Teed-
Murch said. “Corporately, every team member absolutely exhaled.”
Gone are the days when the robust Canadian chain was funnelling cash south in an ill-fated effort to keep the American operations afloat. “Not only are we here to play and here to stay, we are open for business in all 82 stores and online, coast to coast,” she said.
Relaxed in a comfortable chair in the store’s Babies “R” Us section, Teed-Murch has returned to her retail roots.
She was hired as Kitchener store manager in 1996 while she was still a Wilfrid Laurier University business administration student; she had already completed an undergrad degree at Western University.
A year in Kitchener, before moving to head office in a series of roles with increasing responsibility, provided front-line experience and a grounding in whom she was there to serve. “It was a great opportunity, and I credit my time in this store in making me a customer-first focused leader,” the Guelph resident said.
And it’s a leadership approach that’s completely down-to-earth. For at least five years, she’s been on the Kitchener retail floor on Black Fridays, directing traffic at checkouts or helping shoppers check off their lists. She laughs that she tries to keep her employee badge labelled “President” out of sight, to ward off confused looks from customers.
The Kitchener store — one of the country’s top-volume locations — is currently undergoing a renovation that will create more demonstration areas for out-ofthe-box play, lower some of the taller walls, and group products according to “age and stage” rather than brand to make it easier for customers to make the right choice.
Some of those enhancements were first introduced at concept stores that have opened in recent months in Langley, B.C., and Barrie.
“We’re absolutely looking at more stores in Canada, but maybe not the traditional location we’re sitting in today,” TeedMurch said. “A 45,000-square foot store is really not our future.”
A smaller, 20,000-square foot location with digital ordering terminals, mobile pay and other enhancements that blur the line between e-commerce and traditional brick-and-mortar stores may be more appropriate. Party rooms and food and beverage options could be introduced.
The chain may open temporary locations to test out markets; Waterloo Region could see a second permanent location in the coming years, Teed-Murch said. “Both Guelph and Cambridge, as an example, do not have Toys “R” Us locations ... currently.”
Understanding that allowing customers to experience and play with toys first-hand is a competitive advantage, the chain is throwing parking lot “play fest parties” and weekend events to promote the hottest new products.
“We’re really trying to bring the stores to life and bring the magic of play, that wonder that children experience when they’re playing,” Teed-Murch said. “It’s our job to bring joy to families. We believe play is a right for kids.”