October 28, 2008
Toys ‘R’ Us Upgrades Website
Toys “R” Us has added new features and functions to its website that the company hopes will translate into improved sales and profits for the Christmas holiday and beyond.
The retailer said www.Toysrus.com has improved navigation and new features including an online wish list, gift finder and the “Want it Today?” store inventory checker. The site also includes an improved baby registry feature that links with Babies “R” Us.
“We know our customers look to us for our expertise in the toy and baby product categories, and an increasing number of people are using our online store not only to make purchases but to conduct research on products and services available in our stores,” said Michael Scharff, vice president, general manager, e-commerce, Toys “R” Us, U.S. “By simplifying and enhancing the look of our e-commerce site and adding helpful tools, it’s easier than ever for online customers to select and purchase the perfect gifts for their loved ones, quickly locate in-store availability of a desired product, and determine what items they need to prepare for the arrival of a new baby. These advancements provide a seamless online and in-store shopping experience for all of our customers.”
In addition to new features, Toys “R” Us has also redesigned its site to give greater prominence to its “Mom’s Favorites”, where consumers rate products and provide reviews, and to its Rewards “R” Us loyalty program.
Discussion Questions: With so many online sites offering similar visual presentations and functions, what can retailers engaged in e-commerce do to set themselves apart? Will the changes that Toys “R” Us has made to its site help it differentiate itself online and in its stores?
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Can’t agree more with those who have identified the opportunity at TRU to help the relatives and friends who want to shop for their younger set. It is so helpful, especially for those in distant cities to use online shopping as a way to make better choices for their special children. Guidance for age appropriate selections, a wish list with family input, and simple, effective order and fulfillment–it has to bring sales to TRU.
All of the above ideas are good ones, but here’s something simpler: make the online purchase process really easy for the customer. My mother-in-law recently tried to buy a registry gift from a major retailer’s website. My MIL is an extremely smart, Stanford-educated, computer savvy woman. The retailer is one of the 20 largest in America. She could make the purchase. First the site kept telling her the SKU was available then “out of stock.” Then, she couldn’t ship to an address that wasn’t the billing address (hello, it’s a gift registry!). She called their customer service, and they couldn’t work it out either after 15 minutes on the phone. She ended up buying from a different retailer and vowing never to shop at this retailer (online or in-store) ever again.
Michael Scharff has hit on a vital aspect of online differentiation–the components of brand equity. In the case of TRU and BRU, clearly an aspect of brand equity is the “expert” positioning for toys and baby items. Long ago, one of the key success factors for big box category killers was their expertise in the category, not just the depth and breadth of assortment. In the online world, anyone can have depth and breadth–so it is no longer a relevant competitive advantage.
However, being a “go to” source for information about a category becomes critical, particularly when combined with prevalent internet usage behavior. Outside of email, the dominant use of the web continues to be research. Which means, to some extent, that e-commerce sites must also be information providers. The key is what type of information is provided, and how it is offered.
We believe that video is the dominant mechanism to communicate effectively with the consumer in the online environment. The flexibility of video allows the mechanism to be used by various retailers, without each looking exactly like the other. Proprietary video programming–we’re not talking product demos–allows the retailer a specific “voice” and a method of connecting with the consumer that can be entertaining, informative, and drive sales simultaneously. No other single tool exists with as much potential.
Purchase behavior will change dramatically this holiday season. The consumer will research features, prices, and options more than ever. Online presence will serve as reference before the purchase is made–online or at the store. Retailers need to recognize it will be harder to get the transaction and make every effort to make the consumer comfortable with their decision.
Toys “R” Us is the market leader in its category and is behaving appropriately. We can safely assume most shopping comparisons will be made against their offerings; by becoming distinctly convenient it will receive most of the sales.
The “Want It Today?” tool is an interesting way to drive traffic from the Toys “R” Us website to its brick-and-mortar locations, provided of course that the information is accurate and the product is actually on the shelf…not sold out, not in a warehouse but available for sale. Otherwise, Toys “R” Us should follow a few guiding principles:
1. Offer as broad an assortment as logistically possible, paralleling the offering in the store.
2. Execute well: Have products in stock and price right, and ship them on time.
3. Use the website to drive traffic into the store. In today’s pinched economy, this may mean offering sales and values above and beyond what the customer might find in the store or in the newspaper circular.
The last point may seem like a margin-buster, but it’s all about preserving market share in today’s climate and against the tough competitive posture of Walmart in the toy category.
One thing that they can do is make it easier for grandparents, aunts/uncles, etc, who don’t have kids, to buy the item that is age specific and genre specific. For instance, instead of jumping into toys, they put the profile of the person they are buying the gift for and suggestions are given.
Online retail sites are indeed becoming clones of one another, much the same way as brick and mortar stores that compete being all look-alikes and feel-alikes. (Yawn!) However, online retail sites still have varying degrees of how they market their goods, including the free shipping feature which now seems to be the determining factor for many consumers, even as much as the price of the goods.
Consumers are looking for a seamless retail experience. They want prices to be the same online and offline. They want excellent customer service: being able to buy something online and return it to a store. They want free shipping and no hidden fees. They want easy access to feedback from other consumers. These are basic items. Successful e-commerce operations incorporate all of these features in an easy-to-navigate website that allows consumers to quickly find what they want or browse the site with a minimum of clicks.
The new TRU website incorporates many of these features. The free shipping on select items is a problem. With Amazon offering free shipping on orders above $25, TRU is at a disadvantage. TRU should add a shop by price feature within categories. They also display too few items on each page, causing too many clicks for consumers.
TRU has a ways to go before it offers consumers an A-level online shopping experience. At this point, I would give them a ‘B’.
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Can’t agree more with those who have identified the opportunity at TRU to help the relatives and friends who want to shop for their younger set. It is so helpful, especially for those in distant cities to use online shopping as a way to make better choices for their special children. Guidance for age appropriate selections, a wish list with family input, and simple, effective order and fulfillment–it has to bring sales to TRU.
All of the above ideas are good ones, but here’s something simpler: make the online purchase process really easy for the customer. My mother-in-law recently tried to buy a registry gift from a major retailer’s website. My MIL is an extremely smart, Stanford-educated, computer savvy woman. The retailer is one of the 20 largest in America. She could make the purchase. First the site kept telling her the SKU was available then “out of stock.” Then, she couldn’t ship to an address that wasn’t the billing address (hello, it’s a gift registry!). She called their customer service, and they couldn’t work it out either after 15 minutes on the phone. She ended up buying from a different retailer and vowing never to shop at this retailer (online or in-store) ever again.
Michael Scharff has hit on a vital aspect of online differentiation–the components of brand equity. In the case of TRU and BRU, clearly an aspect of brand equity is the “expert” positioning for toys and baby items. Long ago, one of the key success factors for big box category killers was their expertise in the category, not just the depth and breadth of assortment. In the online world, anyone can have depth and breadth–so it is no longer a relevant competitive advantage.
However, being a “go to” source for information about a category becomes critical, particularly when combined with prevalent internet usage behavior. Outside of email, the dominant use of the web continues to be research. Which means, to some extent, that e-commerce sites must also be information providers. The key is what type of information is provided, and how it is offered.
We believe that video is the dominant mechanism to communicate effectively with the consumer in the online environment. The flexibility of video allows the mechanism to be used by various retailers, without each looking exactly like the other. Proprietary video programming–we’re not talking product demos–allows the retailer a specific “voice” and a method of connecting with the consumer that can be entertaining, informative, and drive sales simultaneously. No other single tool exists with as much potential.
Purchase behavior will change dramatically this holiday season. The consumer will research features, prices, and options more than ever. Online presence will serve as reference before the purchase is made–online or at the store. Retailers need to recognize it will be harder to get the transaction and make every effort to make the consumer comfortable with their decision.
Toys “R” Us is the market leader in its category and is behaving appropriately. We can safely assume most shopping comparisons will be made against their offerings; by becoming distinctly convenient it will receive most of the sales.
The “Want It Today?” tool is an interesting way to drive traffic from the Toys “R” Us website to its brick-and-mortar locations, provided of course that the information is accurate and the product is actually on the shelf…not sold out, not in a warehouse but available for sale. Otherwise, Toys “R” Us should follow a few guiding principles:
1. Offer as broad an assortment as logistically possible, paralleling the offering in the store.
2. Execute well: Have products in stock and price right, and ship them on time.
3. Use the website to drive traffic into the store. In today’s pinched economy, this may mean offering sales and values above and beyond what the customer might find in the store or in the newspaper circular.
The last point may seem like a margin-buster, but it’s all about preserving market share in today’s climate and against the tough competitive posture of Walmart in the toy category.
One thing that they can do is make it easier for grandparents, aunts/uncles, etc, who don’t have kids, to buy the item that is age specific and genre specific. For instance, instead of jumping into toys, they put the profile of the person they are buying the gift for and suggestions are given.
Online retail sites are indeed becoming clones of one another, much the same way as brick and mortar stores that compete being all look-alikes and feel-alikes. (Yawn!) However, online retail sites still have varying degrees of how they market their goods, including the free shipping feature which now seems to be the determining factor for many consumers, even as much as the price of the goods.
Consumers are looking for a seamless retail experience. They want prices to be the same online and offline. They want excellent customer service: being able to buy something online and return it to a store. They want free shipping and no hidden fees. They want easy access to feedback from other consumers. These are basic items. Successful e-commerce operations incorporate all of these features in an easy-to-navigate website that allows consumers to quickly find what they want or browse the site with a minimum of clicks.
The new TRU website incorporates many of these features. The free shipping on select items is a problem. With Amazon offering free shipping on orders above $25, TRU is at a disadvantage. TRU should add a shop by price feature within categories. They also display too few items on each page, causing too many clicks for consumers.
TRU has a ways to go before it offers consumers an A-level online shopping experience. At this point, I would give them a ‘B’.