There’s room for a specialist toy retail chain, insists Toymate
Toymate sees plenty of opportunity for a dedicated toy store chain, despite the collapse of US giant Toys 'R' Us — and has spread its wings to Narre Warren in southeast Melbourne.
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Toys 'R' Us crashed and burned but that does not mean there’s no room for a dedicated toy store chain, Toymate co-owner Danny Bloom says.
You just have to wow the kids with something magical, the boss of the rapidly growing toy retailer says.
“We work to bring back the fun of toy shopping,” Mr Bloom told Business Daily.
“When I was young I remember how much fun it was going to a toy store.
“I’m a big kid at heart and so are most of the people who work at our company. Toy shopping should be a magical experience for kids and parents.”
Kmart and Big W have been muscling in on his turf — and providing online shopping options is a must — but nothing can replace the thrill of a dedicated toy store, Mr Bloom said.
Toymate, founded in Sydney a decade ago, opened its first Victorian store earlier this month.
Located at Westfield Fountain Gate Homemaker Centre in Narre Warren, the outlet spans 2200sq m and stocks 12,000 toys.
Previously, the tenant was Toys 'R' Us.
The US company was the biggest toy store chain in Australia when it collapsed in May 2018, shutting all 44 stores and owing creditors $95 million.
Its downfall is reshaping a retail segment that generates $750 million in sales annually, according to a snapshot by consultancy IbisWorld.
The opportunity has not been wasted by Toymate, which has moved into seven former Toys 'R' Us sites over the past year and taken its national store footprint to 21.
Toys 'R' Us had great staff and we have been able to pick up a lot of great people,” Mr Bloom said.
The Toys 'R' Us brand was reintroduced to the Australian market earlier this year but only as an online retailer.
Mr Bloom said a modern toy retailer needed to provide an online sales channel but having a bricks-and-mortar presence was still core to Toymate’s business strategy.
In order to provide that much needed touch of magic, the Melbourne store has a parents’ room and play area that provides art and craft activities, books and movies.
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Bright colours and interactive displays, and in-store demonstrations are other key focus areas.
“We work really hard to surprise and delight customers with the look and feel of our stores,” Mr Bloom said.
“We live in an omni-channel retail environment.
“You have to have bricks and mortar and you have to have online, and you have to provide a good experience in both.
“Retail is tough. Online is growing. You have to give your customers a reason to come into the store.
“But in a tough market there is also good opportunities. We just try to work really hard and be optimistic and make our offer as good as it can be.”