Are Seasonal Pop-Ups ‘Haunting’ Abandoned Toys ‘R’ Us Stores A Good Idea?
The absence of Toys ‘R’ Us headed into the holiday season has created a scramble in two ways: one, to grab a larger share of the toy market, and another for additional physical space. Amazon, Walmart, Target, BJ’s Wholesale Club and Michaels all have expanded their toy offerings ahead of the season, and old favorite FAO Schwarz is reopening its flagship New York City store in November.
But retail giants aren’t the only companies hot on the trail for toy sales and added space: Party City is piloting 50 Toy City pop-up stores located alongside its Halloween City stores. The now-abandoned Toys ‘R’ Us locations leave room for more retailers to go the Party City route and potentially test new ideas in the short term, but financial success isn’t guaranteed —especially with larger retailers competing hard for the holiday dollar.
The RTP team discusses whether these investments are worth it for retailers as they try to gain quick traffic and exposure, and whether these decisions have a chance to impact store performance across the board.
Debbie Hauss, Editor-in-Chief: With the 20,000-square-foot to 50,000-squarefoot spaces multiplied by approximately 800 stores, Toys ‘R’ Us is leaving the business world a lot of real estate to consider. To start, it’s a great one-time idea for Halloween or Holiday pop-up stores to rent the space, but in the long term, the property owners are going to need more of a commitment. It’s been reported that retailers including TJ Maxx, Hobby Lobby and Burlington may grab up some of the properties. But as retailers like JCPenney and Sears also struggle to keep their large-square-foot spaces open, we could be left with a lot of unsightly empty buildings in our malls and on our retail-packed roadways in the near future.
Adam Blair, Executive Editor: Using the shells of abandoned Toys ‘R’ Us stores for Halloween and holiday pop-up locations, as Party City and other seasonal retailers are doing, is an inspired if somewhat ghoulish idea (although that’s appropriate for the current holiday). Toys ‘R’ Us stores tended to be in good retail locations — it was a crippling debt load, not bad real estate, that doomed the chain. Having pop-up stores in high-profile locations could catch the eyes of potential impulse buyers: even if you don’t have kids of trick-or-treating age in your family, you might be inspired to buy a few decorations or even throw a Halloween get-together. For costume consumers, who are likely to have a more focused purchase intent, Party City is covering its bases by partnering with Amazon. All of this is right in line with what needs to be retail’s new mantra: go where the shoppers are; don’t expect them to come to you.
Alicia Esposito, Content Strategist: I know that change is inevitable in the retail industry. However, seeing the local Toys ‘R’ Us shutter – the one I visited myself as a child —was a hard pill to swallow. Imagine my further shock seeing a sign plastered along the front of the store, exclaiming “COMING SOON! HALLOWEEN CITY AND TOY CITY,” a mere week or two after the store’s official closing. I was intrigued by the quick transition and did a web search. Apparently, this was a broader tactic, implemented largely by Halloween stores, and it likely required a lot of quiet planning and discussions with property owners long before Toys ‘R’ Us stores were ready to close. Upon further thought, I realized that the move made sense, and that having a broader strategy targeting these vacant stores was wise. After all, these Halloween stores would be targeting these areas anyway, and property owners would be eager to make a quick buck on the now-empty space. It remains to be seen whether the move will have a significant impact on sales — especially with more e-Tailers and omnichannel retailers expanding their Halloween assortments. However, it’s clear that the move helped draw some media attention, which is enough to drive people to the stores and see what all the fuss is about. What I am most interested to see is what will happen to these spaces once the ghouls are gone and consumers prepare for Santa’s arrival. Which retailers will end up in Geoffrey the Giraffe’s abandoned house?
Glenn Taylor, Senior Editor: If companies are considering new stores within these recently vacated spaces, I would hope that their plans include data gathering and analysis. Establishing a pop-up, or any other small-format, short-term store, requires more than simply stocking the shelves and throwing the doors open; data tracking needs to be a priority above all else. I’m not always the “throw technology at this to solve a problem” kind of person, but I feel that sensors tracking time spent in certain areas; learning what specific products make shoppers stop; and even finding out who they discuss their purchase/experience with, goes a long way toward discovering more about the consumers in a geographic area. Experimentation needs to be taken seriously, especially if a retailer plans on expanding into new physical territories in a more permanent way. Knowing the customer is the key to actually offering them what they want.