Tough Toy Stores

Although the forecasts for holiday retail sales are chilly this year, Valley area independent toy stores are hoping to beat the economic odds and their big-name competitors with sterling customer service and new advertising campaigns. Dave Levy, CEO of Big Kid Collectible Toy Mall & Retro Store, says with the holiday season accounting for about one quarter of annual revenue, he’s more focused on keeping his store stocked with hot holiday collectible items such as Felix the Cat clocks and Rock ‘Em Sock ‘Em Robots, and less concerned with local competitors. Big Kid sells collectible items and vintage memorabilia and generally serves a niche market, though many of the products in the store can still be found in bigger chains serving the Valley. Levy says offering friendly customer service and a special shopping environment are the reasons shoppers keep coming back year-after-year. “There’s a buzz in this place,” Levy said. The National Retail Federation predicts an “average” 2011 holiday season, with retail sales expected to increase 2.8 percent to $466 billion. Experts say this is far lower than the 5.2 percent increase retailers had last year and can be attributed to the consumer uncertainty over the stock market, higher gas and food prices and lack of job growth. Along with a tough economy, smaller toy stores also have to battle big box retailers like Wal-Mart, Target and Toys R’ Us that appeal to mass markets through extravagant ad campaigns and global name recognition. Since the start of the recession, some of the Valley’s independent toy stores have gone out of business. Industry experts say independent toy stores that have survived the economic downturn now are planning to accelerate business by shifting their focus and expanding their presence online, as well as offering a supreme in-store shopping experience to consumers. “Everyone has to work harder this year,” said Kathleen McHugh, president of the American Specialty Toy Retailing Association. “If they are still doing things they did two years ago, they’re not going to fare well this season.” As big name retailers such as Toys’ R Us, Target and online giant Amazon increase their presence in the industry, independent toy retailers are struggling to stand out in a crowd of industry big shots. “The economy has made it challenging for retailers who don’t have the same kind of marketing budgets as the bigger chains,” McHugh said. “They can’t compete with television commercials.” Small toy stores ramp up advertising Karen Sklar, co-owner of Karen’s Toys, a privately-owned toy store chain serving Sherman Oaks and Encino, said she learned the importance of name recognition when she got into the retail toy industry three years ago. She and husband Ron Sklar purchased the Encino store — formerly called Bernard’s Toys — from a struggling owner in 2008 and quickly learned there’s more to running a successful toy business than offering great products. They purchased the Sherman Oaks store, located in the Westfield Fashion Square, in 2010. That placed them near heavy hitter, Disney Store. “We are not well-known (like the Disney Store),” Ron Sklar said. “Our store has a lot more selection of products, but because they are Disney they do more business.” From the start, business has been a struggle with both stores experiencing inconsistent growth, Ron Sklar said. This holiday season, he and his wife hope to achieve a 15 percent increase in sales by aggressively pursuing advertising, an outlet they neglected last year, he said. “Last year we blew it by not doing enough advertising,” Sklar said. The couple has taken to cable advertising and localized coupon distribution in order to generate a wider draw. They’ve also taken their services online and invested in an e-commerce website. Levy said business at his store has grown at a slow and steady pace since opening in 2004. After participating in various promotional opportunities over the past two years, including an appearance in a reality TV show, word began to spread on Big Kid, and the store experienced a spike in business. Levy plans to launch a new and improved website next year. This year, he’s sticking to what works: “It’s about bringing an experience to people that they look forward to coming back to. A lot of retailers lose that idea.”