Ok, hear me out. I already know a lot of redditors will roast my idea for simply being a brick-and-mortar retail concept. Sure, this isn’t some crazy 40% net margin SaaS platform or AI tool, but retail when done well is still the beating heart of the consumer economy.
Between private equity interests, legacy leases anchoring agility and the cost of reimagining traditional retail spaces into more modern concepts, traditional retail stores are in really rough shape these days. Case in point, the demise of Toys ‘R Us shows us how difficult it is to thrive at that scale with PE lurking around the corner and consumer interest shifting by the day.
The silver lining here, though, is that I see a massively underserved market in the form of Millennial parents hungry for a third space they can enjoy while their kids can enjoy rich play that extends beyond jumping on trampolines or screaming in a jungle gym.
Here’s the concept
Reboot the corporate toy store with an experience-first angle focusing less on stacked shelves of in-box toys kids can’t enjoy and more on real, playable experiences ranging from Magna-Tiles to Legos to dolls and STEM toy sets. On top of taking a play-first approach offering kids hands-on creative experiences to occupy their growing minds, we will offer a full-service cafe, parent-focused cafe at the front of each location to give adults a space to enjoy with friends in addition to shared play with their kids. Finally, we will anchor the back of the store with an events space used for daily activities ranging from story time to early childhood enrichment activities to toy building contests, movie screenings and book signings.
Generally speaking, think of this concept less like a Toys ‘R Us and more like a shared coffee shop and shoppable play space for kids. The idea is to create a third space concept to compete with the likes of trampoline parks, fun park jungle gyms and shops like Target/Barnes & Noble to draw in young families looking for a space that appeals to kids and parents alike. The benefit of this concept is two-fold. In addition to driving revenue through traditional toy shopping behaviors we can boost AOVs and customer acquisition with the cafe anchoring the front of the shop.
Is this a pain killer or a vitamin?
Naturally, I’m biased because this is my idea. We’ll see if this holds up based on your feedback, but I see this as a painkiller for young parents today given the lack of solid third-spaces appealing to kids and adults alike. This concept strikes the perfect balance for a young family looking for a way to burn some time on particularly hot/cold days, uneventful weekend days or during shopping trips to the local mall.
Rather than another paid entry fee to the trampoline park or fun park jungle gym, both of which offer little consideration to parents interests, this concept is free by default, but our goal is to offer an experience that naturally converts at a high level while offering early childhood enrichment along the way.
Shop features
Experience-first, shoppable play stations Building toys Imaginary play toys Books Cars Nerf/shooter toys Dolls/action figures Infant/toddler toys ??? Full-service coffee/snack/juice bar Free, fast wifil Little Free Library Event space for daily activities Curated early childhood curriculum Letter and number of the day time Arts & crafts demos Local animal rescue show & tells Story time Competitions Building toy contests Pinewood derby style toy car races etc. Sensory sensitivity room Library zone Children’s and young adult’s book section Reading spaces Gifting zone Gift packaging/accessories section Pre-made, curated gift boxes Pre-loved toy donation discount in exchange for store credits Surprise and delight Randomized surprises and gifts for customers and life milestones High-conversion branded knick knacks Bath bombs Limited edition stickers Same-day local delivery when ordering by 2pm
Rough numbers and comps
Based on my best estimates comps in the retail toys, hobby and games industry run in the following range, which provides us with ample room to responsibly scale:
Barnes & Noble: $1.1MM/yr GMV Build-a-Bear: $1.2MM/yr GMV Target stores: $1.55MM/yr GMV Category average: 1.09MM/yr GMV Regional & independent toy shops: $787k/yr GMV
Our target GMV would be in the $1.2MM/yr range per store offering us enough room to maintain our store offering and not eat into margins.
Alright, then! Roast me! Do your worst/best. I’d rather find the critical flaws now rather than in six months.
Thanks so much for taking the time to read/contribute to the thread!
submitted by /u/aguyinarizona
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