Photo credit: Mike Mozart via Flickr cc
Toys “R” Us has been known for years as a leading destination for purchasing toys for children. However, last June the company announced they were going out of business. After closing over 800 stores across the nation and leaving thousands without jobs, owners are beginning to rethink their decision and are in the process of a possible rebrand opportunity.
Toys “R” Us owners are discussing rebranding the original Toys “R” Us to Geoffrey’s Toy Box. Their well-known mascot, Geoffrey the Giraffe, is becoming the company’s way to market its rebrand since it is easily recognized by all ages. The potential Toys “R” Us rebrand has many feeling mixed emotions, mostly due to the bad reputation they have developed from the number of workers laid off during their closing. Carrie Gleason, campaign manager from Rise Up Retail, told The Washington Post that this revamp is aimed to bandage the tarnished brand name behind Toys ‘R’ Us before the holidays arrive. Some have claimed that this possible rebrand is focused on a way to remove parts of the company’s debt. Gleason also added, “They’re using it as the last way to make short-term profit,” in regards to the use of the mascot for rebranding.
Though the rebrand seems to be a touchy subject for some, the way it is being executed is strategic. The company is debating using a shop-within-a-shop structure, meaning the products they market will be sold in other stores like Target or Walmart. Manufacturers understand that many have an emotional connection to the store and Geoffrey since the company’s inception in 1948. That being said, consumers may be inclined to purchase Toys “R” Us products in stores since it is convenient and potentially brings up nostalgic feelings. If this is the case, it would allow them to regain consumers that they may have lost from their backlash during closings.
The strategic plan Toys “R” Us is considering is an example of how a brand is able to take a crisis, of any kind, and possibly turn it into something beneficial. They essentially have the “best of both worlds” because they are able to make a profit based on their memorable products, yet do not need to produce mass amounts since they do not have their own storefront.
Read more about what experts have to say about the store of the future on skograndpr.com.