On the 'Express' track

When times are troubled, it helps to be able to count on what's considered tried and true. Fortunately, for Learning Express member stores, that means relying on their annual convention and vendor expo. This year marks the eighth consecutive event, which will be held this month in New Orleans.

While mass toy retailers closely followed news about possible toy fair venue changes, these retail specialists can appreciate the fact that thanks to this conference, their buying needs are met, their business relationships further cemented, and their own futures made a bit more secure.

With 108 toy stores currently in business, Devens, Mass.-based Learning Express has placed itself firmly on the toy retail map. The company built its presence via a franchised operation that enables store owners to run their venues independently, while utilizing such shared resources as a corporate buying department, training and support programs.

To become a franchisee, prospective store owners must complete an application process, while those applying for financing also need to create a business plan. For those who are new to the entire entrepreneurial process, they are not left without assistance; the Learning Express team helps assess possible store locations, analyzes demographics and negotiates lease terms as part of its services.

While visiting other Learning Express locations—to glean a feel for running a toy store—is strongly encouraged, the corporate office also runs its own “Discovery Day” program. During this time, future Learning Express proprietors have an opportunity to visit the home office and meet with the corporate group, as their own qualifications are evaluated.

After the deal is finalized and plans for a new venue get underway, Learning Express store owners undergo extensive training, both off-site and in their stores. Pre-opening training consists of one week at the home office—covering everything from hiring to inventory management—and another week of hands-on training at one of the company's certified training centers. Two to three weeks prior to the grand opening and for one week afterwards, a regional support person is on hand to offer guidance and ensure a smooth launch.

Store owners can expect to lay out roughly $150-$200,000 in opening costs, according to Jessica Hopp, marketing assistant. But the advantages of owning and operating a Learning Express store come back to them tenfold. In addition to the aforementioned preliminary support, members reap myriad benefits year-round. Among these are: on-going training and frequent visits from regional support personnel, supplied advertising materials (bi-monthly consumer-direct mail and holiday catalogs and custom signage) and full-fledge access to the company intranet on which Learning Express members can take advantage of vendor discounts, best-selling product info and employee support information.

But probably one of the most frequently used perks is the corporate buying department. The company touts its ability to take the legwork out of replenishing inventory by periodically evaluating new product and providing members with a continually updated inventory, all at prenegotiated vendor deals. Proprietors are able to benefit from this program right from the start; Learning Express corporate buyers place store owners' initial orders in their system and then train them on inventory management for filling their own subsequent needs.

Franchisees are able to deviate from this set inventory and explore other potential product for their shelves. Lisa Visco, Learning Express vice president of merchandising, explains how her group helps define where those new areas of business might be. “Over the last five or six years, we've been going out to other shows like the stationery show and the gift show in Atlanta and New York to look for other products that might do well in Learning Express stores,” she tells Playthings. “We do, though, recommend that the core assortment are proven best sellers.

“They have as much freedom as they want,” she says of Learning Express store owners, “but we also provide a framework for those who are more cautious.”

Regardless of a retailer's buying style, there is one medium that has universal appeal: the Learning Express Vendor Expo where members are able to do the bulk, if not all, of their holiday buying.

Hopp touts the almost 100 percent retailer registration, with a total of about 350-375 in attendance (including vendors). Suppliers include Learning Express store staple names such as Alex, Lego, Playmobil, RC2, Small World Toys, Melissa & Doug, International Playthings and Wild Planet, among others. The interest is so great on the part of the manufacturers, notes Visco, that they have to turn people away every year. Learning Express president Joe Diaz explains the reason for this limitation: “It makes for a less enthusiastic environment if the vendors aren't getting enough attention.”

Visco says the expo's intimate setting affords suppliers something they can't get from other trade show experiences. “These vendors may not get much attention at Toy Fair,” she tells Playthings. “Here, they might get more exposure. It gives them the opportunity to get in front of 100 store owners, show them their wares and do quite a bit of order writing.”

Along with their goods, suppliers are encouraged to bring show specials to the table. Says Diaz, “It's in the vendors' best interests because two days is not a whole lot of time for buying. Those that come with specials really get the attention of the store owners.”

And while stores love that they are able to get a jump-start on their holiday ordering, manufacturers also appreciate the timing of the show. “We certainly hear that it works well for their planning purposes,” he tells Playthings.

San Francisco-based Wild Planet Toys sales coordinator Kristie Church can attest to that. “The Learning Express Vendor Expo is a very lucrative and worthwhile event,” she says. “It is definitely an order-writing show. We've found it to be a great complement to Toy Fair in that several of our Learning Express customers attend both and are able to get through our booth more quickly at the expo because they already witnessed the new product demonstrations at Toy Fair.”

While Alex, Northvale, N.J., has attended the show all eight years, the company was particularly pleased with last year's experience. “In 2004, Alex was overwhelmed by the commitment of every Learning Express store in attendance,” president Richard Amdur tells Playthings. “Orders were prepared in advance and enhanced even more at the show.”

Such positive sentiments are also echoed on the retail side. Kevin Levinsohn, owner of the Scarsdale, N.Y.-based Learning Express, has been to every expo and definitely plans on attending this year's event. “We do a significant amount of our holiday business buying [there],” he says. “We can get our hands on the product and we're offered great deals. It's a much more efficient way of doing business than sitting down with each rep at our store.”

But doing business isn't the only main attraction of the Learning Express convention, says Diaz; it's also an opportunity to socialize with fellow store owners and suppliers, exchange ideas and of course, kick back and relax. “For many owners who've made friendships over the years, a big part of the show is the networking,” he tells Playthings. “For the vendors, too, it's a chance to socialize with the retailers,” Diaz adds.

Visco said she had already received a call from an excited vendor who had been invited to sit with one of the store owners at the conference's awards banquet. “It really allows for good dialogue between the owners and the vendors,” she says.

Speaking of the awards dinner, it's an opportunity for store owners to honor those suppliers who have gone above and beyond. “We try to recognize more than just sales, but things like flexibility and a willingness to work with us,” says Diaz. While this year's categories had not been determined as of press time, he notes that each year they try to do something customized that reflects the store owners' point of view (versus the home office).

Accolades aside, the banquet is meant to be a time for everyone to enjoy themselves without feeling the need to talk shop. “It's a good opportunity to rub elbows in a non-business environment and for people to let their hair down,” says Visco.

As the toy industry continues to evolve, Learning Express continues to adapt itself to changing times, while maintaining its philosophy of “building futures…one family at a time.” With an eye to broadening its product mix, Visco says that some of the new categories that stores are finding success with include jewelry, home décor and personalized accessories. “We try to differentiate ourselves as much as possible from the big boxes,” she tells Playthings.

And clearly their formula for maintaining a thriving retail business is well crafted—and makes for a continued interest in the Learning Express franchise operation. Diaz says, “Because of the recent turmoil in the industry, we have had a great increase in inquiries [about opening new stores].” He believes Learning Express could properly train and open a dozen new stores a year.