KidsWorld takes baby steps - Toys "R" Us Inc. opens new-format store in Elizabeth, New Jersey

Discount Store News,  Dec 9, 1996  by Laura Liebeck

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ELIZABETH, N.J. - Toys "R" Us took the wrapping off its new KidsWorld megastore just in time for holiday shopping.

At 95,000 sq. ft., the store resembles a paradise for children of all ages, a concept Toys "R" Us president Robert Nakasone called "the mother of all destination stores."

Roads leading up to the store, located off the New Jersey Turnpike here, were clogged during the grand opening celebration on Nov. 16. Many would-be shoppers, stuck in traffic, never made it through the doors.

Local newspapers wrote about the traffic jams, while kids and their parents talked about the impressive size and scope of the store.

Wall Street was impressed, too - with the layout and the sales/profit potential of the unit. As a combination store, KidsWorld offers TRU the opportunity to even out its sales and earnings over the course of a year, so it is not so dependent on Holiday. At press time. TRU's stock price was at 35 1/2, near the chain's 52-week high of 37 5/8.

For Toys "R" Us vice chairman and ceo Michael Goldstein, the reception was gratifying. "We've made this into a store that is fun for kids, enjoyable for parents and families," he said.

So far though, Toys "R" Us is not planning a major rollout of the toy store/playland. Goldstein said TRU is in no rush to roll out the new prototype until it is thoroughly tested. "We're going to figure out what we're going to do and then do it right," he said.

The second Kids World store, an 85,000-sq.-ft. unit, opened on Nov. 23 in Fairfax, Va., and a third store is slated to open next year inn Nyack, N.Y., in a mall now under construction.

For TRU, the opening of KidsWorld caps off an eventful year. During 1996, TRU introduced its Babies "R" Us format, now with six stores; announced its merger with Baby Superstore, which should be completed in January; and launched its Concept 2000 toy store layout, now in 13 stores. For 1997, Goldstein said in addition to the Baby Superstore merger, the company will open 15 to 20 more Babies "R" Us units and, beginning in 1998, open 40 to 50 units per year. The Concept 2000 program will include 55 remodels plus 30 new stores in 1997 for a total of 98 by the end of next year.

These new store formats are part of Toys "R" Us' revival efforts in the wake of a disappointing 1995 and mounting competition from discount department store operators, particularly Wal-Mart, now the No. 2 retailer of toys in the United States.

Helping to make the stores a success is a new TV ad program. Key to the spots, created by Wells Rick Greene BDDP, is the revival of the TRU jingle - "I want to be a Toys "R" Us kid." Some of the spots feature former Toys "R" Us kids all grown up.

The new Kidsworld store is a one-stop-shopping emporium combining Toys "R" Us, Babies "R" Us and Kids "R" Us, with five special retail formats in partnership with TRU. The store is expected to produce $30 million in sales per unit, compared to $10 million to $12 million for a traditional 45,000-sq.-ft. TRU toy store, said Nakasone. The floor space of the Elizabeth store is divided this way: 44% TRU, 19% BRU, 17% Kids "R" Us, 10% leased space and 10% common areas such as aisles and bathrooms.

The store features an impressive array of toys, apparel and juvenile products in a cavernous building with a ceiling that soars more than 30 ft. high. Music, at times playing too loudly, sets an upbeat mood for the well lit store. Sculptures of children enjoying activities such as climbing a castle and Geoffrey in an airplane set the stage for the fun-filled environment.

The feeling in the store is one of spaciousness and abundance. The merchandise is organized into 25 departments, such as girls' and boys' clothing, preschool toys, infant care, baby furniture, cars and trucks and a learning center. The color scheme in the store is in child-friendly primary colors. The ceiling is open and painted white; the racetrack is in yellow and blue tiles, and the carpeted areas in apparel and baby furniture are in blue. The store's merchandise aisles feature white tile with blue and green accents.

KidsWorld also features special service areas including Cartoon Cuts, a hair salon for children 12 and under; where kids can watch videos while getting their hair cut; Focus Pocus, a kid-oriented photography studio targeted to moms with children 6 years old and under; Fuzziwig's Candy Factory, a self-serve, bulk candy store with sweets priced at $6.99 per pound; and Jeepers!Jr. a themed indoor family restaurant and entertainment area featuring Pizza Hut pizza and other menu items. The entertainment portion of Jeeper!Jr includes a soft play area, rides, costumed characters and birthday party opportunities, and Kids Foot Locker. There is also a carousel for children to ride. Special features of the store include: * An information center is located in the middle of the store with at least one bilingual associate on premises at all times. * Eight information stations with phones, video screens and store directory to help direct customers are on hand. * A computerized baby and gift registry that soon will be integrated throughout the Toys "R" Us organization. * Four-color lifestyle photos dress the walls. * Aisles are named and outfitted with appropriate lighted icons. In Babies, for example, the icon is a three dimensional baby bottle with a car seat. The action figure aisle is identified by two superheroes. * In the Big Barbie area, some dolls run as high as $500. The area includes a 15-ft. Barbie collector section under glass. The area also features other dolls in try-me glass cases to highlight their features. In boys' toys, a spinning Hot Wheels endcap displays the full range of available cars. * Decals of toys and licensed properties, such as Cabbage Patch, Hot Wheels and Sky Dancers, adorn the floor. * A bike shop presentation features 15 major manufacturers and a see-through bike assembly area. * Electronics is divided by system, making it easier on shoppers to find their way. Software is positioned adjacent to the accompanying hardware. * The playset area features a soft foam floor so children can test the equipment without risk of injury from a fall. * A Warner Bros. shop is featured at the front of the store.