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Toys 'R' Us sets sights on holidays (w/photo)


Cox Newspapers
Thursday, September 17, 2009

WEST PALM BEACH, Fla. — The holiday shopping season was the furthest thing from Jennifer Garrido's mind as she perused the aisles with her sister at Babies "R" Us.

While the mother of two said she expects to spend less this year on gifts for her kids because of the economy, she said she hasn't even started thinking about shopping yet.

BRANT SANDERLIN/Cox Newspapers
Atlanta Braves pitcher Tim Hudson helps Nathaniel Harper at an Atlanta Toys-R- Us.
For a larger, high resolution image, click HERE

Shoppers may not be quite ready to be buying presents to put under the Christmas tree, but Toys "R" Us already has its sights set on the all-important holiday shopping season.

The children's retailer announced plans this week to open more than 80 seasonal stores in shopping centers around the country and approximately 260 temporary toy shops within its Babies "R" Us stores.

"It's like putting a Toys 'R' Us store in the Babies 'R' Us," said Toys "R" Us spokeswoman Katie Reczek. She said the holiday stores, which will be removed in mid-January, will triple the amount of space allotted to toys in each Babies "R" Us store.

The move is part of the company's push to add shelf space before the holidays and gain more market share in the toy retailing sector. The mall stores will be about 4,000 square feet, while the Holiday Express shops within Babies "R" Us stores will be about 2,500 square feet.

"We're aggressively expanding our toy-selling footprint to make Toys 'R' Us more accessible than ever for busy shoppers this holiday season," Jerry Storch, chairman and chief executive of Toys "R" Us Inc., said in a statement.

Indeed, it's shaping up to be another year of fierce competition for holiday toy sales.

While the $21.6 billion toy industry has done better than many other retail sectors, the average number of toys bought per household in 2008 dropped 5 percent, according to industry analyst the NPD Group.

So this year, retailers are jockeying harder than ever for market share.

For instance, Sears Holding Corp. began rolling out its Christmas merchandise online and in 372 stores nationwide in July, and it has introduced toy shops in 20 stores in four major cities.

"All these new pop-up stores are new footage for Toys 'R' Us," said trend specialist Reyne Rice of the Toy Industry Association. "They are trying to offer the brand through a variety of outlets so consumers can reach them wherever they're shopping."

The strategy seems to be a sound one to Yvonne and Bernd Kimmel, who were shopping for a stroller and shoes for their 5-month-old daughter at Babies "R" Us.

"From my perspective, I don't right now see what I can buy here for older kids," said Bernd Kimmel as he watched his 3-year-old son. "It would be good to be able to shop in one place to get everything we need."

Allison Ross writes for The Palm Beach Post. E-mail: allison(underscore)ross(at)pbpost.com.

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