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Toys R Us plays catch- up with its website

Retailer revamping its e- commerce after years of lagging peers

- Charisse Jones

While Toys R Us was minding the store, it admits that it fell behind on e- commerce. Now the company is taking action in a bid to make up for it.

At a time when shoppers increasing­ly browse online and head to a store just to close the deal, Toys R Us is announcing Monday that it is revamping its website to woo back customers who may have fled to Amazon or other retail rivals.

The toy giant’s new site will debut to a small number of users before a full rollout that is expected by early July. The revamp is part of a nearly $ 100 million investment by Toys R Us over the past three years that is geared toward jump- starting an e- commerce experience that it acknowledg­es lagged some of its retail peers.

“The website really represents the front door of our brand,’’ said Lance Wills, Toys R Us’ first global chief technology officer, who noted that more than 60% of the company’s customers visit its website before deciding to go to an actual store. “In a year to two years, we have to catch up on 10 years of innovation, and that’s no small feat.’’

That was a deficit the toy chain could ill afford when 15.1% of retail sales, not counting gas stations, car dealership­s, groceries and restaurant­s, occurred online in the last quarter of 2016, according to the financial informatio­n services and analytics firm IHS Markit. Last year, the company’s same- store sales, an industry measuremen­t that excludes revenue from newer locations, fell 1.4%. And in the fourth quarter, which includes the benefit of holiday sales, same- store sales dropped 3%.

“Some organizati­ons recognize faster than others there are shifts in the ways customers want to be communicat­ed with and the way customers want to purchase products,’’ says Toys R Us CEO David Brandon. “It probably took us a while.”

The makeover means that instead of constantly clicking through choices, customers can tap once on a category like “dolls” or “bicycles” and be led to a finetuned list. Checkout for basic purchases will shrink from at least five steps to two. And for the first time, visitors to the baby registry will get notificati­ons alerting them to a sale on bottle warmers or a stroller recall.

Retailers of all stripes are fighting to compete with online powerhouse Amazon, but for Toys R Us, chains like Target and Walmart have also become fierce competitor­s.

“We view anyone who sells toys ... to be a competitor,’’ Brandon says.

 ?? ROBERT DEUTSCH, USA TODAY ?? The new Toys R Us website should roll out by early July.
ROBERT DEUTSCH, USA TODAY The new Toys R Us website should roll out by early July.

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