Nick Muriella, associate vice president of toys at Toys “R” Us Canada, talks about keeping shelves stocked, holiday toy shipments, and toy predictions for 2022 in the Toy Book’s annual State of the Industry Q&A.
The Toy Book: How did Toys “R” Us Canada make sure that shelves were stocked throughout the holidays?
Nick Muriella: This was a challenge for many retailers this year, but luckily being a toy-only retailer really gave us an advantage. While some items may have been out of stock from a few of our partners, the depth of our assortments really helped deliver a positive experience to our customers. This being said, not all of our suppliers had issues, and fortunately we were able to keep a regular flow of many of our items in-store consistently. We also worked very closely with our partners to identify trends ahead of forecast and made important decisions to expedite programs as needed.
TB: Do you expect missing holiday toy shipments to arrive in early 2022? How does Toys “R” Us Canada plan to balance that out with spring 2022 product shipments?
NM: Some will for sure. The delays and container shortages were not a surprise. We reviewed our inventory needs continuously over the course of the season and adjusted accordingly. Based on industry lead times, spring 2022 would have been ordered or committed prior to fall 2021 sales starting. We really focused on new items, knowing existing items would have late stock arriving. It’s about being nimble.
TB: How did 2021 toy sales online compare to in-store sales? What will your toy offerings look like in 2022?
NM: We have had a number of government-mandated store closures and restrictions that have continued in 2022. We were thrilled with our online sales results. This was largely driven by our Curbside Pick Up and DoorDash options. Partnering with DoorDash allowed us to offer customers a same-day delivery option. The response was great!
A large part of being a Toys “R” Us kid is experiencing the in-store magic: being greeted by our friendly, knowledgeable staff to show you what’s new, and if you’re lucky, even running into Geoffrey! Discovering play again in stores is part of our DNA. In 2022 and beyond, we will continue to focus on our in-store experience. Toys are a highly emotional purchase that is extremely hard to [re-create] online. Getting in store and playing will be back in a big way in 2022.
TB: What are your predictions for the state of toy retail in 2022?
NM: I expect brick-and-mortar to outpace online growth as customers choose to get out and experience toy retail again. Two years of online growth was largely driven by stay-at-home orders, school closures, and a lack of options for family entertainment. In 2022, expectations are big for a return to travel, vacations, and movie theaters. Online growth will continue for those looking for a quick, no-nonsense transaction or to have a gift shipped to a specific location. There is no substitution for that.
This article was originally published in the February 2022 edition of the Toy Book. Click here to read the full issue!
