Toys R Us’ plan to save itself is unreal
Retailer debuts AR activities at its stores
All you have to do to feel the rush of racing a truck, watch wildlife while on safari and nab a shark while fishing is head over to your local Toys R Us store. Just don’t forget your smartphone.
Two weeks after filing for bankruptcy protection, the toy giant is debuting an augmented-reality experience that it hopes will help reinvigorate its stores and make them destinations for shoppers who might otherwise choose to shop online.
The AR activities — which plant computer-generated images on top of a real-world environment — tap into the interest sparked by the Pokémon Go craze last year. They will go live at 23 Toys R Us stores Monday and then nationwide on Oct. 21.
While the AR experience was being developed months before the company filed for Chapter 11 protection to deal with $5 billion in long-term debt, efforts to make the retailer’s roughly 1,600 stores more interactive will be key to the company’s turnaround, says CEO Dave Brandon.
“It’s going to transform the experience of coming into a Toys R
The augmentedreality experience was in development months before the company filed for Chapter 11 and will be key to its turnaround, says CEO Dave Brandon.
Us bricks-and-mortar store and turn it into something that’s quite different and a lot more fun,” Brandon told USA TODAY. “We believe that’s going to drive a lot more traffic into our stores, which will ultimately put us in a position where we can be more successful at growing our sales and our company.’’
An app will be the key to unlocking AR activities at 13 stations throughout the store.
Geoffrey, the Toys R Us mascot, will greet customers virtually, giving them instructions on what to do. Young shoppers, guided by flashing icons, will then locate stickers on the floor. When they point their tablet or smartphone at the sticker, a toy or activity will come to life on the screen.
In the baby doll aisle, for instance, a cooing, virtual version of a doll on the shelf can be adopted, given a name and even have its dirty diaper changed. In the basketball station, kids can sweep a ball into the hoop with a swipe of the screen and compare their scores with others on a leaderboard. Each activity allows shoppers to rack up stars, and the more they earn, the more experiences they can tap into.
It’s a deeper dive into technology for the toy giant, a pioneer in the 1950s and ’60s when it essentially became the first big-box toy retailer. In recent years, the company has fallen behind online giant Amazon and rival Walmart, who now have a greater share of the retail toy market.
In response, Toys R Us has upgraded its website, emphasizes its expertise and is trying to turn its stores into hubs of activities that go beyond shopping.
Analysts agree that if the store chain is going to compete, it is critical that it come up with experiences that entice a tech-savvy generation to stroll its aisles.
“It’s vital for Toys R Us to give consumers reasons to visit its stores,” says Neil Saunders, managing director of retail for the consultancy GlobalData. “This can only be achieved by spaces that offer experience and excitement. The current big warehouse-type model just doesn’t cut it. It offers no compelling reason to visit over buying online.”
Later this fall, Toys R Us says that it will open playrooms at 42 stores where children can try out games and gadgets, and toy demonstrators will be on standby.
Brandon says that he doesn’t believe that “any one of these programs that we’re both testing and rolling out is a silver bullet ... that’s going to dramatically change trends.”
But he added, “Bringing our stores to life and creating engaging experiences for our custom-
ers is a business strategy. ... That strategy was in place before we filed to restructure the company, and it will be one that will continue with increasing amounts of investment as we move forward.’’
More urgently, the new experiences could help build buzz that encourages wary shoppers to visit Toys R Us this holiday season despite the bankruptcy filing.
“A lot of people hear the word bankruptcy and they immediately conclude that the brand or the company is going to go away,” Brandon says. To the contrary, he says, the company is working with its vendors as it begins the restructuring process, and this holiday season “our shelves will be stocked. We’re going to be as strong as we ever have, not only for this holiday season but for holiday seasons to come.”