End of Retail
We’ve all seen it: Macy's, JCPenney, Sears, and other huge department stores are shuttering doors faster than we can count, but the biggest shock for many was when Toys R Us announced it was shutting down all of its stores. For those of us who grew up associating the toy giant with Christmas and birthdays this was painful, but let’s be honest - we saw it coming. When was the last time a kid in our lives asked us for a physical toy instead of a video game or new technology? Does the end of toy stores mean the end of traditional toys? More importantly, what does this mean for our beloved teddy bears!? To predict the future, we have to understand the past, so let's see how the teddy bear market started and where it is right now.
Ever since teddy bears became a general commodity for children and loved ones (check out the history of teddy bears here) they’ve been a classic item for toy stores. But it wasn’t until teddy bear disruptor Maxine Clark launched the first Build-a-Bear in 1997 that we saw a new greater demand for teddy bears. Her business model could be considered an incredibly early form of retailtainment, where retail stores focus not just on the products being sold, but the experience customers (in this case: kids) have in the store. As she stated in this interview with CNN Money, she learned that “Retailing is entertainment, and when customers have fun, they spend more money" from Stanley Goodman, then CEO of May Department Stores. She turned our natural affinity towards teddy bears into the incredibly successful company we all know today.
The end of an Era?
On the other hand, we have stores like Toys R Us, started by Charles Lazarus, who was inspired by the then happening baby boom. He started out by selling furniture and baby goods but quickly turned to the toys and celebrity appearances Toys R Us became famous for. However, after multiple ups and downs (detailed in this article) including 4 CEO’s within 16 years, bankruptcy in 1976, and rising competition from ecommerce, they called it quits in 2018 with no hopes for financial recovery. There are a lot of reasons Toys R Us ultimately failed in staying alive, but primarily it couldn't keep up. It couldn't keep up with ecommerce and technology trends, and despite having the retail draws (retailtainment) to stay alive, they proved to not be able to sustain or adapt this to keep customers engaged.
Who’s to blame?
It’s easy to blame the fall of retail stores on tech giants like Amazon, Apple, and the rise of video games/social media, but they aren’t always the culprit. Contrary to popular belief, the toy industry has actually grown by 3.6% yearly! While this is an incredibly small growth rate, it means there's still an interest in classic toys like teddy bears, and the proof is in the pudding. While plush toy sales took a dip in 2017, sales have been steadily increasing since then and teddy bears lead that market accounting for more than 42% of the industry. So yes, the toy industry is going through a digital upgrade to stay afloat but there are also still plenty of kids and adults that love teddy bears!
In short, teddy bears are timeless and aren’t going anywhere! We hope to continue spreading joy to people everywhere through our teddy bears!