Market Research -New Toy Store

[Toysandstationary]

Hello

I am planning to open up my own toy shop in the short term future, i am just interested in other peoples opinions in what they would like to see if they were to shop inside a toy store for me to get any more ideas to consider and look though.

I have worked though retail for 10 years in the food side, so moving on to toys retail is a new thing for me, i know simple things like clean shop, full, good range of items, price, quality of goods, layout, polite friendly helpful staff, are all important sides to retail no matter what part it is.

I will also have background music in the shop e kids music disney songs and other songs related to products etc to give the shop a nice friendly family feel to it, and i know i will need a entertainment license .

Also does anyone know where the best place to buy tills from as there are a lot of places online could anyone suggest a place that would be worth a look.

I am asking on here as i would like a business point view on this instead of a public one as i belive it would be more helpful for me from this point of view.

Thanks.

 

[JohnLocke1]

Don't want to burst you bubble, but toy shops are going out of business left, right and centre.

Be very careful, that's all

 

[Toysandstationary]

Don't want to burst you bubble, but toy shops are going out of business left, right and centre.

Be very careful, that's all

I know its going against the tide somewhat but where i am planning to set up there is no competition as there are not any toy stores around for miles which i see as a big plus,

it has been asked for where im planning to to set up a toy shop, so making sure its 100% in its looks, price, quality, is a major goal in this project. Trying to make this different to original toy shops is where im hoping to change that trend.

Also if things didnt work out for it i have made sure it wouldnt be the end of the world due to tight budging and careful planning. so its like a shot to nothing but hopeful i can get it to take off.

 

[Philip Hoyle]

You may not have local bricks & mortar competition, but your competition is still immense - the internet with ebay, Amazon, Argos, Tesco Direct, etc - it's not just ToysRUs that have decimated traditional retail toy shops.

To be successful, you'll have to match their prices AND have the full range. I know a very small shop with a stock value of £70,000 - have you got that kind of money to stock it properly? Remember to have any chance of success, you need full ranges of all major toy suppliers, and need several of each stock item. You havn't a hope of success if you don't have several of each stock item.

You also have to remember that you'll always end up with a lot of stock that simply won't sell - there'll always be unpopular ranges even from the major suppliers, that you'll have to heavily discount to get rid of. So you need to make a decent margin on the stuff you do sell, to cover the losses on the clearance items. That makes it difficult to be competitive!

These days, people don't just accept and buy whatever stock the shop has. People can easily find out what the full range looks like and are far more choosy. The days are gone where little Jimmy wants a Lego fire engine and will be happy with whichever fire engine the toy shop has in stock - he'll have looked on the internet and looked in the catalogue and know the exact one he wants - if you don't stock it, he'll get it from Amazon instead.

It also seems a little odd to be worried about where to buy a till. This should be the least of your worries at the planning stage. Have you sourced suppliers - you need to find out which suppliers deal direct (and their minimum orders and margins) and which deal through distributors and wholesalers. You may also find you won't be able to stock some manufacturers at all because some have restrictions as to who they sell to, i.e. shop size, location, anti-competition, etc.

I really don't want to burst your bubble, but as has been said, small independent toy shops are virtually extinct these days - there's a reason for that, so you really have to have some real strategy as to why you'll be successful when they weren't.

 

[poundcoin]

I really don't want to burst your bubble, but as has been said, small independent toy shops are virtually extinct these days - there's a reason for that, so you really have to have some real strategy as to why you'll be successful when they weren't.

Unfortunately all true and not forgetting how seasonal it is .
Doesn't take a genious to work out that the majority of sales are concentrated into 1 month of the year but you will have to have plenty of stock for months beforehand .
You will need a lot of working capital to see you through the lean times .

More recently I only concentrated on budget-end toys and unless there was some particular craze , (i.e aliens-in-eggs or diablos) toy sales through the non-xmas part of the year were abysmal , apart from the odd summer line when the weather was hot .

 

[Toysandstationary]

Thanks for the reply

What i am trying to create is something different to toys r us, amazon, play.com etc, ebay etc, a local toy shop for the local area for people who does not use the internet and perfer to go into a shop and feel, look and touch because alot of people still like to do this. If i was a carbon copy to them it would be useless to open as people would just shop with them.

I honestly feel i have just as much chance with a retail shop over my website for the very same reasons you mentioned people would shop over me to the likes of tesco,play, ebay etc as they are more high profile than me.

As for items i am not trying to compete with other retailers but i will stock alot of items that i know for a fact toys r us dont stock at all and will match any price difference with them alone because i know i dont sell many of the same lines and some i will be better Etc Nerf cs6 gun £39.99 toys r us, you can buy the exact same one from trade at £25.99 so i belive for some lines it can be done to match them. A lot of items will work out cheaper in the shop due to no postage costs handling fees to online,

I use toys r us as a main rival due to them being the nearest to me and they will be the only one i compare against.

As for suppliers i have been trading on my website for a while now and i have a great range of suppliers 8-10 which all supply different ranges from plush,action, board games,stationery, branded names many others i deal with them alot of the time and say they have been fantastic to me with this helping me with free POS stands etc for the shop.

Another thing what i will do that other major shops wouldnt if i did not have it in stock and was requested i would chase it up with suppliers and if i could get it cheaper than the big shops i would get it for them asap as part of customer service.

I will hold about 15k worth of stock i know its not alot but the shop isnt that big the range will be from newborns upwards and will have a good mix of lines in there.

My goal is to attract people into my shop is though Customer service make sure people like the products, price, shop looks good and hope people enjoy shopping from me and to come back.

 

[Toysandstationary]

Unfortunately all true and not forgetting how seasonal it is .
Doesn't take a genious to work out that the majority of sales are concentrated into 1 month of the year but you will have to have plenty of stock for months beforehand .
You will need a lot of working capital to see you through the lean times .

More recently I only concentrated on budget-end toys and unless there was some particular craze , (i.e aliens-in-eggs or diablos) toy sales through the non-xmas part of the year were abysmal , apart from the odd summer line when the weather was hot .

Hello

I have took this into account and will stock up on low budget pocket money items such as top trumps, collectable figures, branded egg items etc and will be mixed in branded names as disney, wwe, TY and others

 

[Doodle-Noodle]

Hiya - good luck with your new venture!!! If you are in a location where there aren't any other toy shops you could do perfectly well ......... kids are absolutely dreadful at landing parents with the news they have a birthday party to go to, and there's often no time for parents to buy a present on line or drive miles into town to get one, pay for parking etc so you will pick up "emergency" trade on a regular basis. Make sure you have a good stock of gift wrap and birthday cards for kids too so that they don't need to go anywhere else.
Of course it won't be easy but there's no reason why you shouldn't give it a good go ...... internet buying over Christmas last year was a complete disaster for many people with the snow delaying/cancelling deliveries completely so lots of people may well be wary this year - capitalise on that part of your business, point out there's no delays when buying toys with you, buyers can see it, touch it, check it out before they pay for it ..... definitely plus points in my book!
With regards to tills, we bought a reconditioned/used till from Southern Counties Business Ltd in Horsham ...... 3 years on it's still going strong and only cost about £150 if that's any help! Good luck

 

[Doodle-Noodle]

We do a "wish list" for customers in our shop, we just made our own wish lists which we have dotted around the shop - customers fill them in with things they'd like, write their name on it, we keep it behind the counter so when they've sent their husbands/children/friends in to get their anniversary/birthday presents, we hand over the list and they choose something from it. That would work well with kids presents as parents often don't have a clue what their children's friends might like or want, so if birthday boy or girl has a list of what they'd like in your shop it would make it much easier to buy for them! Prevents duplicate gifts and therefore the likelihood of someone coming back asking for a refund/exchange too!

 

[deniser]

We used to have a toy shop but it was impossible to stock the big brands because the wholesale price to a small retailer was higher than the retail price at some of the superstores. So things like Lego, Playmobil, Barbie, Baby Born etc are probably out unless you join a buying syndicate.

Amongst small brands there were some good sellers with good profit margins eg. Manhattan Toy, Papo & le Toy Van, Rainbow Toys, Flair, Bigjigs, Orange Tree but you do need the big names to attract the customers really. It's very difficult.

 

[JohnLocke1]

We used to have a toy shop but it was impossible to stock the big brands because the wholesale price to a small retailer was higher than the retail price at some of the superstores. So things like Lego, Playmobil, Barbie, Baby Born etc are probably out unless you join a buying syndicate.

Amongst small brands there were some good sellers with good profit margins eg. Manhattan Toy, Papo & le Toy Van, Rainbow Toys, Flair, Bigjigs, Orange Tree but you do need the big names to attract the customers really. It's very difficult.

Lego are particularly bad, they will actually limit the amount you can buy, and if you are a small one off this can be as low as £500 a year and they won't supply to buying groups either.

 

[Toysandstationary]

point out there's no delays when buying toys with you, buyers can see it, touch it, check it out before they pay for it ..... definitely plus points in my book!


Hello

Thanks Doodles that there is exactly my point on why i feel to open up a shop is just as big benefit with an online shop website. When starting off with this business we went to mother/toddler playgroups and found this was a good starting point as people got to see the the items feel touch and brought them there, but to just be stuck on a website the same interaction is not there and puts people off.

The area i am hoping to attract are for parents that cant drive and have to go out there way etc centre city is 5 miles away by being local takes this problem away and certainly will appeal to them,


As for stock i have never sold lego just always stayed away from them, even at the trade show in feb there stand just seemed locked away from the rest plus i
feel cheaper brands like megablocks and others are just as effective.

Deniser - From what i have looked into and seen certain high brands example Nerf can be matched with other big names Toys r us etc as they sell them at such high prices. not saying everythink but it can be done with some high lines.


Also i have looked at some of them suppliers you mentioned like you say good margins but would they sell well not so sure to be honest.

But thanks for all the suggestions every idea is worth looking into , at least to rule out any bad ones

Im hoping the shop will be open around mid august time just waiting on my solicitor to confirm the lease is ok ( advice i picked up from this website)

 

[kulture]

Two things. First if you think that you can buy in a gun at trade £25.99 and sell cheaper than Toys R US at £39.99 then you are going to need to sell a LOT as the margin is too small. Also once something gets popular, they go out of stock with the manufacturer fast, so you are left with no stock and unable to satisfy demands.

Secondly, you would probably be better off going into a niche toy market. For example in my nearest city there was a toy shop that specalised in toys for toddlers (0-5). The toys were mainly made of wood, well designed, durable, quality items. Slightly more expensive that the ToysRs tat, but they looked better.
The owner made a killing every christmas as the grandparents wanted to but that extra special toy that was educational, not mass market, and unlikely to be duplicated by another relation.

 

[Toysandstationary]

Two things. First if you think that you can buy in a gun at trade £25.99 and sell cheaper than Toys R US at £39.99 then you are going to need to sell a LOT as the margin is too small. Also once something gets popular, they go out of stock with the manufacturer fast, so you are left with no stock and unable to satisfy demands.

Secondly, you would probably be better off going into a niche toy market. For example in my nearest city there was a toy shop that specalised in toys for toddlers (0-5). The toys were mainly made of wood, well designed, durable, quality items. Slightly more expensive that the ToysRs tat, but they looked better.
The owner made a killing every christmas as the grandparents wanted to but that extra special toy that was educational, not mass market, and unlikely to be duplicated by another relation.

Thats very true and fully understand that, i only used that as a example to show high branded item can be matched with the bigger names but there any many others that ive seen and can be compared with that.

when i first open up i will have a range going from newborns to 13+ to find the ideal range what items sell what models etc and then can adjust to what will suits the shop best,

I dont want to compete against toys r us and other names but i feel selling them cheaper will encourage people to come to me to show i an sell high quality items at affordable prices.

I will have a lot more ranges like beatrix potter, the hungry caterpillar, gruffalo many others the bigger names dont sell. In my opinion will give people a reason to come to me and not other shops.

 

[JohnLocke1]

Forgive me, I'll say it again and I may even add it as my signature

DON'T stock the top ten or even twenty best selling UK products in your field.

 

[sarahessex]

For me the first thing (as a parent of 4) I would like to see is a genuine love of children. Our local toy shop owner seems to hate children!

I would like to see:

-a play area for kids to play/try toys (and pester parents to buy them!!!)
-lots of pocket money toys
-nice birthday presents for schoolfriends around the £5 mark
-the "must haves" like lego minifigures etc..
-staples like colouring books, pens etc..and a craft corner
-party bag fillers

Any biggy purchase I would buy online as I know I would get it cheaper!

 

[Toysandstationary]

For me the first thing (as a parent of 4) I would like to see is a genuine love of children. Our local toy shop owner seems to hate children!

I would like to see:

-a play area for kids to play/try toys (and pester parents to buy them!!!)
-lots of pocket money toys
-nice birthday presents for schoolfriends around the £5 mark
-the "must haves" like lego minifigures etc..
-staples like colouring books, pens etc..and a craft corner
-party bag fillers

Any biggy purchase I would buy online as I know I would get it cheaper!

Many Thanks That is useful to see as i am planning to use alot of cheaper small lines to go with bigger ones. As pocket money lines would be key to selling everyday on a regular basis all though the year.

There will be quite a big arts section for kids with pens,colouring books, felt tips etc also looked into party supplies to go with this again just to keep sales though the year. All for different occassions,

There will be a small demo table to show off latest lines and and window display to give the products good viewing and touch and feel on the products so the lines will be given a chance to show its quality.

Most importantly staff in store will be told on how to treat every customer as VIP, as impressions and how they deal with people will be high on the list to make sure every customer feels welcome and would like to come back to shop again.

Thanks again for that i feel i am going in the right direction with this for when the shop does open.

 

[DesignerNick]

Hi

Have a look at The Entertainer and see what they do, I was amazed at the one in the bull ring that the kid's entrance actually goes up, round, over the tills and they come out on a slide. I agree that make the shop as child friendly as possible because those shops where the staff are constantly watching kids.

I remember as a kid in ELC playing on the wooden trainset, it was the highlight of a shopping trip and something was purchased every time

I was in Toys R Us earlier but knew I could get what I was looking for (A Woody Figure) cheaper online so didn't bother getting it there.

If you need anything, just give me a shout. Good Luck

 

[deniser]

Wow Toys do a play table and give you toys to go on it. It was always a real hit in our shop, so much so that all the parents wanted to buy the play table itself.

 

[SillyJokes]

Find out what price people pay for kid's birthday presents in your area - is it £8, £10, £15? Make sure you have a good range of these.

When I was skint and my kids were young I worked out that one of my major out goings was presents for other people's birthday kids. I think this is an important market which you need to cover well and as previously suggested, keep wrapping paper, labels, ribbons and cards for that add on purchase.

Secondly try pocket money toys. Small purchase but good mark up.

 

[Toysandstationary]

Wow Toys do a play table and give you toys to go on it. It was always a real hit in our shop, so much so that all the parents wanted to buy the play table itself.

When laying out the shop i will look into doing this to show off latest toys and ones not well known to give them extra POS. Also a different feel to a plain toy shop just to things on shelves. A nice mix of learning,educational , to plain fun toys to give a good mix on the table.

 

[Toysandstationary]

Find out what price people pay for kid's birthday presents in your area - is it £8, £10, £15? Make sure you have a good range of these.

When I was skint and my kids were young I worked out that one of my major out goings was presents for other people's birthday kids. I think this is an important market which you need to cover well and as previously suggested, keep wrapping paper, labels, ribbons and cards for that add on purchase.

Secondly try pocket money toys. Small purchase but good mark up.

I will have a lot of this from Top trumps, Licensed plush, geli bath, outdoor items plenty of others to keep items between £1-£10 at a high stock level at all times as i belive this is a figure which people will likely spend the most on.

Again looking head there will be a small but mixed section of wrapping paper, labels, decorations for a number of ocassions to supply with any item in the shop.

 

[Jeff FV]

We do a "wish list" for customers in our shop, we just made our own wish lists which we have dotted around the shop - customers fill them in with things they'd like, write their name on it, we keep it behind the counter so when they've sent their husbands/children/friends in to get their anniversary/birthday presents, we hand over the list and they choose something from it.

What a brilliant idea!!!

As a bloke, I hate buying presents for my o/h as I about the only thing I can be confident of is that I will get it wrong! (The one exception was the pair of Take That tickets that I managed to secure (at a price!!) and I'm hoping that this one moment of genius will compensate for years to come of poor gift selection!)

The one downside to the list idea is that I know that in one or two shops my o/h's list would simply be a catalogue of all their wares!

Jeff

 

[JMRidley]

I dont want to compete against toys r us and other names but i feel selling them cheaper will encourage people to come to me to show i an sell high quality items at affordable prices.

I don't think you need to compete on internet prices if you have a shop. We have a toy shop in our high street (small town) which is fairly well used. I buy toys there for my children's friends - always last minute - and birthday/christmas presents for my nieces and nephews. I know I could get them 10-20% cheaper on the internet but I'm not that organised! And judging by how many of my friends shop at the toy shop they aren't either!

 

[deniser]

Don't forget also the older children who like fiddly stationery items such as Didl and Sanrio.

The soft toys from Keel are also really well priced and good quality with good profit margins.

Oh and Orchard Games always sold exceptionally well for us as they are in the party gift price range as well.

I think the Papo knights and castles were our bestseller.

 

[Philip Hoyle]

I don't think you need to compete on internet prices if you have a shop.

Absolutely, as long as you're "specialists" in the things you sell and have the full range.

I know it's not really comparable, but there is a tiny model railway shop near me that's run by a bloke who really knows his stuff. The shop is full to capacity with stock. He doesn't try to compete with the online retailers, but he does permanently discount most of his more expensive stock by about 10% or so meaning that the difference in price between him and ebayers isn't quite so alarming. Modellers go to him from miles around because they know he'll have what they want and know that they'll get it discounted. He is an absolute goldmine of information and also a goldmine for "bits & pieces" that the online retailers wouldn't stock. I've never once walked away from his shop without what I wanted, however big or small, cheap or expensive. But far more important is the after sales service - returns and repairs aren't a problem - refund or replacement is the first response, no arguing etc. I know I can buy something and if it's faulty, I have confidence that it will be replaced/refunded immediately - and that's worth a lot more than a few pounds less by buying online! Many times, I've looked on the internet and found something I wanted for a fiver less than he sells it for, and each time I've been tempted but then I realise that I want to keep this guy in business for all the other things I need, so it's worth a fiver to help him survive!

The OP is going to have to stock a full range of products and make sure they have plenty of stock to keep customers coming back, time and time again. Nothing worse than not having something - can easily lose a customer forever.

 

[theretaildoctor]

[FONT=&quot]Key market issues
Some of the key current market issues affecting toy shops include:[/FONT]

• [FONT=&quot]According to consumer magazine Which?, the closure of high street retailer Woolworths has seen toy sales by independent toy shops grow by up to 45%. Woolworths was the UK's third biggest toy retailer with an estimated £300 million of sales.[/FONT]
• [FONT=&quot]Competition for a toy shop comes from other independent toy shops, large chains of toy shops including Toys 'R' Us, department stores including Debenhams and John Lewis, supermarket groups, and online traders using services like eBay. Many larger retailers provide incentives such as special offers, discounts and competitive pricing. Yell.com lists more than 1,530 toy shops, including 1,300 in England, 111 in Scotland, 63 in Northern Ireland and 57 in Wales.[/FONT]
• [FONT=&quot]According to the British Toy and Hobby Association (BTHA), the value of UK toy sales rose by 7% between January and December 2008, and was worth £2.9 billion.[/FONT]
• [FONT=&quot]There is a sustained market for traditional toys and games as parents and grandparents often buy similar toys to the ones they played with as children. Popular products include Lego and Meccano, art activities including Spirograph, and dolls and soft toys, especially reproductions of dolls and teddy bears sold as collectors' items.[/FONT]
• [FONT=&quot]Trends in children's toys change rapidly and it is important to keep up to date with the latest top-selling toys. The Toy Retailers Association publishes information on the 'toy of the year', going back as far as 1965. Go to toy retailers association or more information.[/FONT]
• [FONT=&quot]Seasonal buying has a major impact on toy sales. According to the Toy Retailers Association, the majority of toy sales (approximately 55%) take place in the final quarter of the year, in the run-up to Christmas.[/FONT]

 

[Toysandstationary]

Absolutely, as long as you're "specialists" in the things you sell and have the full range.



The OP is going to have to stock a full range of products and make sure they have plenty of stock to keep customers coming back, time and time again. Nothing worse than not having something - can easily lose a customer forever.

Fully understand that, When i open up first time the shop will be fully stocked in every possible space and shelf as first time impressions count a lot for repetitive customers and to show that the shop is professional in every way.

The reason i will stock plenty of different ranges is because i feel people with more choice are more likely to buy off me than if i was a specific toy retail only selling certain brands or items. I can see why people do this as there is benefits to this but the area i am based there is big potential as there is nothing around for miles and for inpulse buying this is a huge benefit.

As for when something will run low/out i will on each order i place with suppliers will try to bring new lines in to replace or cover any potential spaces/gaps that may appear and also new lines will make sure most visitors will see somethink different on a weekly visit. As its toys this is very easy to cover and also i have a good range of suppliers to make sure this happens on regular basis.

 

[JohnLocke1]

Trends in children's toys change rapidly and it is important to keep up to date with the latest top-selling toys.

I've said it before and I'll........

Na, I've said it enough now

 

[Fuzzy]

Great thread and I wish you lots of luck with your new venture - how exciting!

Not sure if you have the space but a themed fun day every month would be brilliant at attracting customers.

Def, def some demo toys on tables for children to explore.

Maybe even a little children's book corner.

Loyalty cards

Balloon with purchases over a certain amount spent?

OOoh, I'm excited for you

 

[Toysandstationary]

Great thread and I wish you lots of luck with your new venture - how exciting!

Not sure if you have the space but a themed fun day every month would be brilliant at attracting customers.

Def, def some demo toys on tables for children to explore.

Maybe even a little children's book corner.

Loyalty cards

Balloon with purchases over a certain amount spent?

OOoh, I'm excited for you

Thanks for that ,

i have looked into loyalty cards i want to see how the shop first goes and then if all is ok start that idea with every £25 spent on a card they will recieve £2.50 taken off there shopping.

I will put a book stand in there with cheaper childrens books on but not going overboard as the shop is right next to a library overdoing with them would be a bit much i feel.

Well some suppliers have actually offered me some free samples of things to give away on the opening day to help with its first day, to be honest didnt think of the balloon idea but that is a good one to consider for.

Again the theme days would be a good idea for when the shop is quiet between jan- march for people to come in to at least see whats going on,

 

[Toysandstationary]

We do a "wish list" for customers in our shop, we just made our own wish lists which we have dotted around the shop - customers fill them in with things they'd like, write their name on it, we keep it behind the counter so when they've sent their husbands/children/friends in to get their anniversary/birthday presents, we hand over the list and they choose something from it. That would work well with kids presents as parents often don't have a clue what their children's friends might like or want, so if birthday boy or girl has a list of what they'd like in your shop it would make it much easier to buy for them! Prevents duplicate gifts and therefore the likelihood of someone coming back asking for a refund/exchange too!

Hey toodles thanks for that idea

i am planning to use that idea for some research before the shop opens as i am writing up a short survey /wishlist
i will release it next week about the shop opening to a local sure start local library and a local shopping centre to promote the shop for when it opens and to get a faint idea on what people would like to see in the shop so i can always plan for new lines that i would missed out on improve the shop.

 

[DesignerNick]

Have you thought about going to the Telegraph to try and get a feature? Maybe donate some old toys to a charity shop or a couple to a doctors surgery and they might feature you