In this extended edition of The Toy Book’s 2023 State of the Industry Q&A roundtable, Jamie Elliott, General Manager at Alex Baby & Toy, discusses the U.S. rollout of this new retail concept created by the teams behind Toys “R” Us Canada, FYE, Alex Global Products (formerly Alex Brands), and Everest Toys. Want more insight from the all-stars of the toy industry? Click here to explore this year’s lineup!
TB: Last year, you quietly opened three stores on the East Coast. Tell us a little bit about Alex Baby and Toy.
JE: We are currently in start-up mode and evolving our concept. Our original, “Stage 1” stores are situated in mall locations and have a very robust assortment of toys, baby gear, and children’s books. In true specialty fashion, we differentiate ourselves by offering brands that may not be widely distributed in big-box retailers and extended assortments of the top toys in the industry. Given the heritage of the Alex brand, we have a large assortment of learning and exploration toys that will help children develop through play.
TB: What are your plans to expand your retail footprint?
JE: We are currently building our first standalone store at the Woodfield Commons in Schaumburg, Illinois — outside of Chicago — with an expected opening before Easter. This store will be our latest concept that will feature large collectible and outdoor assortments (bicycles and seasonal sports). We are looking to build on the learnings from our initial stores by continuing to offer brands and assortments that are not widely available at big box retailers. Also, we are looking to offer excitement within the stores through store events and enhanced displays. Our broader plan is to continue opening stores this year with a goal of having a substantial footprint throughout the U.S. by the start of 2024.
TB: How does the combined expertise of your team and its family ties — FYE, Everest Toys, Toys “R” Us (TRU) Canada, and Alex Global Products — work together to shape this new retail concept?
JE: We are blessed to have a lot of talented individuals working throughout our organization. The Alex team leverages expertise across the business and maximizes synergies where possible. From a store point of view, our assortments are a combination of TRU Canada and FYE programs. Our primary focus is to put together assortments that allow kids to learn and explore through toys; however, our secondary priority is to provide collectible toys for adult customers. Our partnership with TRU and FYE allows us to have a leg-up when building our assortments.
TB: Just a few years ago, many declared mall retail to be dead or dying, yet now it seems families are returning to malls. How does Alex Baby and Toy fit in?
JE: Our first three stores are situated in mall locations where we have seen significant traffic as customers look to physically reengage in their purchase process. We feel that customers are enjoying browsing stores and finding new products that they may not have been aware of by simply shopping online. We feel that malls will continue to serve an important role within the toy industry as parents look to share the magic of toy stores with their children.
TB: What are your overall predictions for the state of the toy industry and toy retail this year?
JE: We expect that there will be some early season profit headwinds as retailers liquidate excess inventory left over from the 2022 holiday season and the economy slows due to the impact of inflation. As we head into holiday 2023, we expect customers to shift their purchases from high-ticket hero items to lower-price-point toys. Historically, toys have been recession-proof, as parents will sacrifice to bring the magic of the holidays to their kids. Also, we expect a huge year for entertainment-driven toys as there is a packed slate of content that is scheduled to be released throughout the year.
A version of this Q&A was originally published in the 2023 edition of The BIG Toy Book. Click here to read the full issue! Want to receive The Toy Book in print? Click here for subscription options!
