New beginnings

The Right Start is ready to begin—again.

After a brief association with FAO Schwarz, the specialty juvenile chain was purchased by new owners and brought out from under bankruptcy. Now, 18 months later, the company has repositioned itself as an independent entity in the juvenile retail market. Roughly 20 years ago, The Right Start got its feet wet in the juvenile world via a shop-by-mail catalogue operation. Shortly thereafter, in the mid 1980s, the first storefront opened alongside the company’s corporate Westlake Village, Calif., office, and before long, additional stores were dotting the area.

By the mid 1990s, the company hit its stride and developed a reputation for offering quality baby products that discerning shoppers were hard-pressed to find at mass outlets. “The Right Start was establishing itself as a purveyor of select and carefully chosen product that met the important needs of its customers,” CEO Brian McDermott tells Playthings.

Perhaps that corporate vision became a bit blurred when, in 2001, The Right Start made plans to purchase the now-defunct educational toy chain Zany Brainy, followed by the acquisition of FAO Schwarz. In a February 2002 interview with playthings.com, former CEO Jerry Welch explained the company’s rationale for broadening its scope. “It’s a natural to put a Right Start boutique in a Zany Brainy store,” he said. “In many cases, we have a customer who has two children. One could be age 2, and she goes to Right Start; she has another, age 6, and she goes to Zany… FAO is the ultimate toy store.”

But, as many the specialty retailer has learned, the idea of being all things to all customers defies the actual definition of being a specialized retailer. Absorbing the three retail venues into one medium didn’t allow The Right Start to concentrate its portion of the business on the infant/toddler sector.

Today, The Right Start’s corporate philosophy has returned to its original mission statement. Led by CEO McDermott—also a partner in Hancock Park Associates, the private equity firm that owns The Right Start—the company is dedicating itself to the business it knows best: babies.

“Our single biggest focus in setting up The Right Start to be independent was to return the company to its core,” he says. “Our big message is we’re returning The Right Start to its roots.”

Even despite the changes that the company experienced over the years, the retailer’s consumer profile remains the same: “parents of infants and toddlers looking for a variety of solutions, value and expertise in both the product and the person presenting it to them,” according to McDermott.

Senior vice president of marketing Hope Neiman re-emphasizes the latter part of this equation. “Our customers come to us because of our expertise,” she says. “We can provide the knowledge they need to make the right decisions when buying for their baby.”

Sales associates who can answer customer questions with confidence and credibility play a critical part in giving that retailer a competitive edge. But understanding the ins and outs of the very merchandise they are selling is not a task the retailer can handle alone. Deneese Jackson, The Right Start’s brand new merchandising director—who previously worked for Pottery Barn Kids—notes how the retailer/supplier relationship is essential to smart business practices.

“We train our people by utilizing the vendors; they are the experts,” she explains.

Jackson’s main goal is to tackle the challenge of merchandising product so that the essentials are highlighted, while adding select items that attract the discriminating Right Start customer. “Having the right product mix is very important,” she stresses. “My focus is to have the core basics of what every parent needs, and then to have a unique layer of specialty products that 'wow’ and delight their child. Success is having a good mix of both.”

Part of the merchandise mix will include product that can only be found at The Right Start. And with the wealth of innovation that has taken the juvenile industry by storm over the last several years, Jackson will have plenty of opportunities to explore. “The focus in baby products has grown substantially,” she says.

However, strict attention will be paid to supplying all the essentials first and foremost. As Neiman stresses, “we are not going to dabble in adding peripheral things.”

But how can a retailer expand its offerings without teetering on the brink of oversaturation? McDermott points to how, in the last 12 to 18 months, The Right Start added a new selection of feeding system alternatives without sending a message of “product overload” to its customer.

“Also, looking at a category like travel,” he offered, “we may go deeper with a particular vendor. We feel we can do a better job now, stocking more broadly and deeply.”

This October marks the return of the venue that put The Right Start on the map—its catalogue. After a two-year hiatus—according to McDermott, the catalogue was put on hold after bringing the company out of bankruptcy in order to concentrate on re-establishing the storefronts and the Web site—the book is back, boasting a new look and feel. Jackson says about half of the items are new and have never been featured in a catalogue before. Expanded items in travel accessories and toys will also be highlighted.

Bolstering the catalogue and Web site sides of the business are three new storefront locations that opened in the last six months—White Plains, N.Y., Natick, Mass., and Pasadena, Calif. This brings a grand total of 33 stores in 13 states. While McDermott says the catalogue relaunch is the main focus, he is confident that three to five new stores will open in the latter half of the company’s fiscal year.

The last 18 months have certainly been a time of growth and renewal for The Right Start. McDermott says he’s thrilled by the support the company has been receiving from its vendors as they renew their relationships. “That’s not an easy thing when you’re coming off our recent history,” he remarks. “It’s quite clear, though, that our industry values The Right Start as a competent, independent and focused company.”

“The world becomes more and more competitive each year in every [product] category. We think this [juvenile] category is one where you can translate value to the customer. Bringing them value saves them time. The fact that we can bring them the right solution saves them both time and money. We believe if you focus on those things, your customers will appreciate that,” he says.