Toys R Us Realizes TRU Needs to Change …
The main takeaway … (from Antonio Urcelay, CEO, Toys”R”Us, Inc., and Hank Mullany, President).
Over the past several months, we have undertaken a comprehensive analysis and diagnosis of the business, and believe we have four main issues to resolve – improve the customer experience in-store and online, make progress on changing price perception, put disciplines back into inventory management, and right-size our cost structure on a global basis. We are encouraged that all of these foundational issues are firmly within our own control to fix, and our strategy will address these to improve the business over the short-term and put the company on track for the future.”
Mr. Mullany noted, “Our ‘TRU Transformation’ strategy is grounded in consumer research and customer insights, and is anchored by three guiding principles – Easy, Expert, Fair.
Among our highest priorities will be to deepen our focus on the customer, build meaningful relationships through loyalty and targeted marketing programs, and improve the shopping experience both in-store and online.
- Transform the shopping experience in-store and online. To improve the customer experience in-store and online and become a customer-centric business, the company has already begun to implement initiatives, such as cleaning up existing stores and improving in-store execution; improving out-of-stocks and the speed of checkout; solidifying customer relationships through strengthened loyalty and targeted marketing programs; improving price perception by developing a clear pricing strategy and simplifying promotional offers; and optimizing the e-commerce experience by capitalizing on the online shopping growth and omnichannel integration with stores.
During the meeting, Mr. Mullany unveiled a new customer promise to provide the broadest selection of products to help kids and babies develop, learn, have fun and be safe; be the easiest place to research and find solutions throughout the journey of parenthood; and be the best resource for children’s gift-giving occasions – all at fair prices in an environment that offers expert service and unique services with the ability to shop whenever, wherever and however they want.
- Collaborate with business partners to drive differentiation, innovation and value. As part of “TRU Transformation,”Toys”R”Us will leverage business partner relationships in the U.S. and abroad to drive category leadership and effective differentiation in products, events and services, and create exciting shops and product statements in-store.
- Like all retailers, the company regularly looks at the performance of its physical locations to ensure they are meeting the needs of the business. While it may close some stores during the year primarily due to lease expirations, at this time the company has no plans to close a significant number of stores … The company will continue to open stores and expand fulfillment capabilities in markets where it makes the most sense, including in China where growth has accelerated.
You can read the rest of the press release at Toys R Us.
19 April 2014
15 Comments
I have always had great luck at toys r us. The people have always been friendly and helpful. They hold stock at the service desk with your name on it. The latest Lizzie and Lee Race case for example. TRU here had it when no other stores were carrying it. The TRU exclusives like the Streets of Japan with Tamiko are now classic Cars and rarities. Prices are high but TRU has been good here about price matching to Walmart and Target. I don’t pay the tag price, I take in a receipt from Walmart/Target or a picture on my phone of the shelf tags at the other stores. Santa Car was only at TRU, and when it went on sale after Christmas a few years ago I bought about 20 sets for collectors all over.
The classic Wall e toy Interaction from Thinkaway was hard to find, so TRU
employees knew I wanted one with the EVE, and were great, when I came in regularly looking for it. I hope they survive, I really do.
Amen! I almost fell over when I saw the price of the basic single pack of Cars was $5.99. I always check for new castings for a collector on this site when my wife shops at Joann Fabrics next door to TRU. I have looked for action figures for my son also. Toys are so overpriced I always walk out empty handed.
“Toys”R”Us will leverage business partner relationships in the U.S. and abroad to drive category leadership and effective differentiation…”
Hope this means more Cars exclusives?
Anyway, their pricing s*cks unless they are trying to compete with CVS!
Their rewards program is a hoax. How about whatever rewards you earn automatically show up in your account when they scan your rewards card and they don’t expire the day after you earn them?
Can’t tell you how many rewards I have earned with them then lost because I didn’t know I had them or they expired.
However, my local store always has friendly and helpful clerks and they will usually open another register if there is a line to pay.
I’ve seen a lot of dissing of KB Toys today. I actually miss KB. The store I traded with in Citrus Heights, CA actually kept up a want list for individual customers in an archaic card file behind the counter. On many occasions I received calls from store personnel indicating that they were holding new arrivals from my want list and that I had a couple of days to redeem them before they would be returned to stock.
With that kind of service and assurance that the items I wanted were actually in stock (and waiting for me), I didn’t mind paying a little extra. It was quite a bit better than the wasted trips I’ve been making lately.
(MET: I think most people remember the last few years of KB. For instance, the closest KB to me at CHristmas timewas hilarious, there was literally more items on the floor than the shelves … I do remember the wall of Rollin’ Bowling Mater games – probably should have bought more than 1. 🙂 ).
Toy-R-Us’ commercial motto is “Why shop any where else for toys”?
Simply, because Toys-R-Us NEVER has “new” toys AND what toys they do have are way OVERPRICED!!!
The latest and newest toys can ALWAYS be found at Wal-Mart or Target weeks or months BEFORE Toys-R-Us.
and that is if TRU gets them at all?!?
9x out of 10 we leave TRU empty-handed because they just do NOT have what we want OR at a reasonable price!
TRU is just like KayBee toys was and unfortunately they too will soon be out of business.
Toys R Us needs to change? Whatever gave them that idea? Maybe it was lack of toys people actually want while unwanted toys clogged the shelves that was their first clue. I know another thing they better change is their prices. Around here it’s now 6.99 a single. That’s over 7.50 with tax. Yeah right. Deluxe a are like an absurd 11.99 or something. I stop looking when the dollars get to double digits. The sales are good but selection is terrible.
We shop at local TRUs and too many times whatever we want isn’t there to buy. New cars- no. Been looking for Frozen merchandise for my 4 year old girl and her cousins- don’t have any. How about any of the new Star Wars figures- nope not those either. How about at least a new case of Hot Wheels. – of course not. Maybe I’ll grab a new My Little Pony for my little girl. 6.99 each What? They are 3 something at Wally’s. What am I doing here – don’t know. Leaving empty handed again.
TRU’s pricing is going the way of KB Toys. So is their stock. A lot of generic toys cheaply made. And their brand name toys way over-priced. If it keeps up, it will meet the same demise as KB.
my TRU has cars for $3 each, no limit listed today only
but nothing I need of course
TRU near us has the cars diecast at 5.99$ and says thats a HOT PRICE LOL!
Well, after Mullany makes further progress on “changing price perception” (line 3 above), you simply won’t perceive that as a bad price. 🙂
My nearest TRU is 30 minutes away. It also takes that long to check-out.
They remind me of both Kmart and Kohls, as I don’t think any of TRU’s stores have ever been remodeled (Kmart), and you need a Masters Degree from M.I.T. to understand their sale pricing (Kohls). I believe TRU’s recent 2-for-$6 sale was limited to 2 singles?
Also, if you’re going to offer something for free with the purchase of $xx.xx, then either keep enough of the freebies in stock or take the freakin’ signs down! I’m still holding a grudge for my online experience 2 or 3 years ago when they told me they sold out of the 2-packs of Christmas cars AFTER they’d enticed me to spend $60 on Cars merchandise.
Their philosophy is more “FALS” than “TRU”.
I forgot to mention TRU’s worthless Rewards Program. Maybe I don’t spend enough to earn anything decent, but the only thing I’ve ever gotten from them are $5.00 coupons in the mail. Most of them expire before I can even get up to my nearest store.
Totally agree with everything you say here.
Not only what Jinzo said but – They shun the Collector Market as a whole. If they were more friendly to the Collector Market they might actually sell more. IE: GET looking for something we ask for!!
One problem I have with TRU is that they overcharge for merchandise. I mean look at Cars. My store has them @ $4.19 each while Target $3.89 & Walmart $3.59 [I think]. Other times, their promos don’t even apply. Last time I tried the 20% off friends coupon and they told me that because it’s a hot item, I wasn’t allowed to use it. Hot Item @ $4.19? Really?