State of Independents

As independent toy store owners enter into a new business year, Playthings asked them to take a look back at the 12 months past, reveal their expectations and product needs for 2008 and offer a glimpse into what they'll be doing differently going forward.

“2007 was a very exciting year. We moved our business to a new location in June. It was busy and hectic. Our business was up 25 percent this year, and we are excited to see what our new location continues to bring us this year.”

—Lin Hanselko, Timmy's Toy Chest, Lake Mary, Fla.

“Our holiday sales were down 2.5 percent from the previous year. 2007 was a weak retail year for our entire area, due to several large plant layoffs, energy costs, gasoline prices, and because the region was already among the poorest in the state, it was especially vulnerable. We seem to have fared better than other retailers in our mall. We do not consider toy recalls to have been much of a factor for us. If anything, they provided an opportunity for us to showcase what customer service and resource information we can provide as a result of our ASTRA network. We solidified our position as the good guys with quality toys and reliable safety information. For 2008, we plan to continue to reinforce the specialty store advantages noted above, and grow our online store, MyFavToys.com, which we launched in a small way this past fall.”

—Sam and Suzanne Cox, My Favorite Toys, Carbondale, Ill.

“2007 was a great year for my store. I opened my storefront earlier this year and have been pleasantly surprised by the huge response we have received from the community. In 2008, we would like to continue to be an affordable resource for learning materials, activities and remedial services all under one roof.”

—Kelly Pluchino, Education Station, Montgomery, N.Y.

“Last year turned out to be a decent year for us. We were up about 1.5 percent and trimmed expenses. November was up about 15 percent and December was down 0.5 percent (but we had five “snow events” in December). I expect 2008 to be a challenge due to the current, economic uncertainty.”

—Bob Breneman, G. Willikers! Toy Shop, Portsmouth, N.H.

“2007 was a good year. We expect sales to grow significantly in 2008 as we expand our product line.”

—Jamie Burdette, LB Toys, Media, Pa.

“Ages & Stages Toy Box had a very good year. We were up more than 10 percent. I am anticipating another strong performance in 2008, projecting 6.5 to 7 percent growth. “

—Ray Goodhart, Ages & Stages Toy Box, Golden, Colo.

“[Sales] were up nearly 20 percent in March, went flat over the summer and finished the year down 5 percent—could have been worse.”

—Deane Nelson, WizardKids Toys, Toledo, Ohio

“Internet business grew, but in-store sales were down slightly. 2008 will bring more of the same with the increasing price of gasoline.”

—Alan Cason, abraKIDabra Toys Inc., Cary and Greenville, N.C.

“2007 was a good year until December, when soft holiday sales eroded the gains we had secured in the first 11 months of the year. Expectations for 2008 are cautious as we move forward, given energy prices, the housing market, the stock market and the residual negative effects of toy recalls.”

—Michael Ziegenhagen, Playmatters Toy Stores, Pepper Pike, Ohio

“Last year was a fantastic year, well beyond our forecasts—specifically the second half of the year. We actually had the best holiday season sales in our entire 36-year history, and we are expecting it to continue in 2008.”

—Sloan Mukai, The Wooden Horse, Los Gatos, Calif.

“Overall, our sales were up for 2007, although December sales were off. We experienced several major storms in December and two were early enough in the shopping season that many of our customers decided to order online instead of braving the snow. In addition, the price of home heating oil and concern over toy safety in light of the recalls significantly impacted people's buying decisions.”

—Laura Miller, Imagination Village, Concord, N.H.

“2007 was a fantastic year for us. Our sales increased significantly, not just the fourth quarter, but for the entire year. It is our hope that this trend will continue in 2008.”

—Tom England, Dancing Bear Toys and Gifts, Frederick, Md.

“The mass merchants, such as Target, that have moved into the specialty market continue to impact us, but even more so are the online sites that discount specialty items so deeply to make a buck or two per item. We will try to do an even better job of drawing out the difference between us and the big box stores: our service, our play areas, our new and unique products and the notion that a trip to our store is a family outing, not a chore.”

—Sam and Suzanne Cox, My Favorite Toys

“One of the biggest factors impacting our holiday sales were, of course, the big recalls. It was not uncommon to have several customers in the store each day looking for products not made in China. In order to overcome this, we did our best to reassure our customers that none of our products in the store were on the recall list and that we work with wonderful companies who would let us know immediately about recalled products.”

—Kelly Pluchino, Education Station

“We are celebrating our 30th anniversary this year, and we'll be recognizing that in many ways. We're revamping our website later in the spring, and we're partnering with 12 local companies and non-profits (one each month) to increase awareness of what we do and to showcase what we all add to our downtown area. Of course we'll be looking closer than ever for breakout products that can boost sales and interest in specialty toys.”

—Bob Breneman, G. Willikers! Toy Shop

“Currently, space and finding good employees. “

—Jamie Burdette, LB Toys

“We are a website and also an Amazon.com merchant. The factors we have are: not having enough help to fulfill our orders and not having enough space to store our inventory. We are looking into finding a bigger facility and hiring more workers.”

—Barton DeMarco, Brighter Starts, Park Ridge, N.J.

“A weak local economy, three new toy stores in the area, the Chinese hysteria—I can do nothing about factory layoffs or new competition. What I can do is make sure my ad copy emphasizes quality, originality and value, and educate my customers about U.S. and European Union safety standards regarding the CE certification.”

—Deane Nelson, WizardKids Toys

“Lack of area foot traffic for the store and increased competition for our Internet store. Luckily we have some good businesses moving to the neighborhood. I think that and increased promotional activities should be beneficial. The Internet is a matter of being more aggressive in the marketing and maybe adding some promotional sales, which I've avoided until now.”

—David Plenn, The Dinosaur Farm

“Gas prices and discounting by other retailers. We offer a customer reward program—our competitor stopped theirs and we are honoring their coupons— plus offer extra incentives to shop with us.”

—Alan Cason, abraKIDabra Toys

“Age compression is having a negative effect as children move into electronics and web-based products at an earlier age. Secondly, the continued blurring of distribution policies by manufacturers; products show up in all classes of trade. [It's] more difficult to maintain the image of a specialty retailer.”

—Michael Ziegenhagen, Playmatters

“The largest factor is uncertainty in the economy: price of gas, housing market and the continued age compression in the specialty and general toy industry. We continue to search for products that will help to extend our age range upwards.”

—David Hesel, The Toy Shop of Concord, Concord, Mass.

“There are several factors impacting our industry. One of them is the ongoing popularity of video games, TV, computers and general screen time tied into the toy industry. Our store tries to stay away from that type of product, so we need to continue our community outreach to educate [consumers] on the importance of old-fashioned play. We have always celebrated National TV Turn Off Week by holding play days, which include activities that don't require any screen time, but rather use the child's imagination and creativity. We hold free workshops for the various community groups and schools to teach parents what to look for in a “good toy.” We also sponsor community activities such as a writing contest and story-telling parties to promote creative writing and reading. Another big factor that impacted our store in a good way this year was all the recalls. Customers came to our store, because they could get excellent service and, although we sell a lot of toys that were made in China, our sales associates could reassure the customers they were purchasing quality toys. We had all the information from our vendors, including copies of some of the actual tests. For this upcoming year, I will—as I'm sure everyone else will—ask the vendors about the materials used, their factories and their quality control procedures.”

—Sloan Mukai, The Wooden Horse

“Costs are rising everywhere: cost of goods sold, shipping, rent, payroll, utilities, etc. Also, competition is greater and customers are more driven by the quest to attain the “best price” available to them. One solution to the first dilemma would be to raise prices, but market forces make this more risky. There are a multitude of stories about customers visiting specialty stores to become informed (garnering a lot of time from well-trained staff) only to say thanks for the information, but I'm going to look for these items on the Internet before I decide to purchase. Fortunately, we have found that many of our customers say to us that they want to buy from us even if it costs a bit more. Thank goodness for these customers who appreciate all the services and quality of selection that we give them! Our goal is to offer fair prices and to continue to enhance our business so more and more customers develop a sense of loyalty and appreciation. This may be a shrinking slice of the public mindset, but it's worth catering to.”

—Sallie Kasiwa, Timbuk Toys, Denver

“I anticipate the economy will be a major factor in 2008. I am planning for a quiet first quarter and then we will evaluate how to prepare for the spring. Unfortunately, there isn't much we can do about consumer confidence. Our primary marketing strategy is based upon differentiating our shop from the other stores in the area: providing exceptional product knowledge and well-selected merchandise.”

—Laura Miller, Imagination Village

“There have been no negative impacts. I believe all of the positive impacts are due to the fact that parents want to shop where they can find unique, educational, and fun, battery-free toys. Children still love to play games and interact with their friends.”

—Tom England, Dancing Bear Toys and Gifts

“Reassuring consumers about safety and delivering stock to vendors that is needed in a timely manner.”

—Lin Hanselko, Timmy's Toy Chest

“We would like toy manufacturers to report to us what they are specifically doing to ensure quality, safe toys—not just give us flag-waving, “we are committed to safety” letters. Also, we'd like them to find some U.S. factories for at least a few items, so our customers would have the option of some USA-made products with the brand name on them, even if these items were more expensive. Finally, we'd like manufacturers to do their very best to minimize shipping costs. Some do this, but there are still major manufacturers who fill their boxes with heavy cardboard and don't seem to negotiate aggressively with shippers.”

—Sam and Suzanne Cox, My Favorite Toys

“Manufacturers need to help put meaning back into the term 'specialty.' This term used to mean new and innovative products to be found at unique stores. The term has been watered down over the years to include mass-produced items sold at Target and Toys 'R' Us. Today's competitive environment pressures manufacturers to be a little safe, but I'm hoping that can change a little this year. Also, I feel that packaging will be important for my customer in that they'll want to see some safety information other than just an age recommendation. Perhaps a company guarantee that lead is not an issue. Environmental concerns having to do with both products and packaging, I believe, will also be on the minds of my customers.”

—Bob Breneman, G. Willikers! Toy Shop

“Quality control! So many toys have quality issues, especially anything that has electronics.”

—Jamie Burdette, LB Toys

“My staff would like to see a reduction in the amount of defective merchandise received as a result of poor shipping procedures, vendors missing manufacturing deficiencies, and less than adequate product protection when shipping. (I believe that most do an excellent job, though.)”

—Ray Goodhart, Ages & Stages Toy Box

“Keeping us informed about recalls and safety issues with their toys.”

—Barton DeMarco, Brighter Starts

“U.S. toy companies must offer more creative, higher quality products. One telling way to gauge how culturally backwards this country has become is to compare typical European toys with most of the stuff sold in U.S. mass-market outlets.”

—Deane Nelson, WizardKids Toys

“More aesthetically pleasing packaging and a greater emphasis on the quality of the manufacturing. People are ready to shell out a little more money if the product is better.”

—David Plenn, The Dinosaur Farm

“Educating the public that not all toys made in China are unsafe. That has been our biggest problem with people who 'don't want anything made in China.'

—Alan Cason, abraKIDabra Toys

“Greater transparency. Communicate to retailers.”

—Michael Ziegenhagen, Playmatters

“Product innovation: There are far too many manufacturers doing the same thing in different boxes. Specialty is looking for unique and engaging products.”

—David Hesel, The Toy Shop of Concord

“Adhere to strict safety guidelines and be able to assure the public of their credibility.”

—Sallie Kasiwa, Timbuk Toys

“We would like to see toy manufacturers provide more proactive information regarding their manufacturing procedures and quality assurance methods, especially post-production testing. We know, as retailers, that no company deliberately designs an unsafe product. However, I don't think that manufacturers and sales representatives fully understand how difficult it is to stand in front of a new mom or a grandparent and assure them that the toy they are purchasing is safe. Many companies issued letters and many answered detailed questions, but I was surprised by how many did not provide information beyond saying 'Our products are safe.' That really isn't good enough in our business.”

—Laura Miller, Imagination Village

“We are looking for alternatives to Thomas the Tank Engine wooden trains. Since the recall, our sales have gone down. We are always looking for new products.”

—Lin Hanselko, Timmy's Toy Chest

“We will be looking to stock a variety of higher- order thinking educational games that challenge a child. Also, we would like to stock more science material dealing with experiments that are not complicated and more kid-friendly.”

—Kelly Pluchino, Education Station

“We'll stock more games, puzzles, construction toys and local products. Of course we'll be searching for alternatives to Chinese-made items. We'll devote less space to wooden trains, a category that continues to fall.”

—Bob Breneman, G. Willikers! Toy Shop

“Stocking more Made in the USA products. Customers are demanding it!”

—Jamie Burdette, LB Toys

“I will stock more games, plush animals and innovative craft projects. While we like the soft and multifunctional dolls that a child can dress-up and feed, we are not likely to bring in more miniature, poseable and collectible Barbie-type hard dolls in 2008.”

—Ray Goodhart, Ages & Stages Toy Box

“More U.S.-made products. Less oversized and heavy products—we get killed on shipping costs.”

—Barton DeMarco, Brighter Starts

“No major changes; fewer books, maybe one less doll line, expand lines like Playmobil, Rokenbok, Thames & Kosmos.”

—Deane Nelson, WizardKids Toys

“More infant and toddler items.”

—David Plenn, The Dinosaur Farm

“More green products—Plan Toys, in particular—and anything that I can find that is European or particularly made in the USA...if the price is bearable for the consumer.”

—Alan Cason, abraKIDabra Toys

“We will continue searching long and hard for toys manufactured any place other than China. Obviously, products made in the USA are topping the wish list, but we try to be very conscious of price point, so we are always looking for play value and quality balanced with price. We also try to feature local, New England-made products. Also, we are looking for organic and green products, phthalate/PVC-free plastics, and products with more environmentally-friendly packaging. Our customers are very excited about buying from companies who are taking an active role in improving the planet!

—Laura Miller, Imagination Village

“We may begin stocking more outdoor toys and games.”

—Tom England, Dancing Bear Toys and Gifts

“Resilience! When you believe in something, like the products you sell, stand behind them and loudly proclaim that I am good at what I do! Incorporating myself into this community has also created more awareness about my store than I ever thought possible.”

—Lin Hanselko, Timmy's Toy Chest

“In our third year, we learned that taking the time to differentiate what an independent, specialty store is really pays off in customer loyalty. We have a strong core of customers who appreciate our presence, understand our challenges in the marketplace and want to support us, even when they can sometimes buy an item for less elsewhere.”

—Sam and Suzanne Cox, My Favorite Toys

“As a retailer I learned that you can't always make everyone happy. Also, no matter how many products you have in your store, there is always someone who wants the one thing you don't have!”

—Kelly Pluchino, Education Station

“I've learned that people are much more likely to return to my store when they've had a really positive experience, been treated with genuine respect, seen things that they've never seen before or seen something they haven't seen in years and, of course, left with something that will delight a child in their life.”

—Bob Breneman, G. Willikers! Toy Shop

“I allowed myself to trust my instincts more in regard to purchasing, promotional programs and staff development. I found that after 3½ years, I am finally beginning to attain some skills relating to predicting purchasing trends, knowing which advertising has a better chance of success, when to 'push at' an employee to do better—and when to back off. I am using a lot more “brain” and a little less ego when making decisions.”

—Ray Goodhart, Ages & Stages Toy Box