Toys“R”Us Reinvents Itself: From Storefronts to the Heart of Lifestyle Fun

Exploring the kidult sector

Although the diminishing birth rate in Thailand presents a difficulty, the CEO of Toys“R”Us Asia also emphasized the necessity of venturing into the expanding kidult sector, where 40% of the Thai populace is under 35 years of age. 

At present, approximately one-eighth of our revenue is derived from the kidult sector, but we identify considerable prospects for development, and we project that this category will ultimately make up about one-third of our overall business, Tsoi elucidated.

To address this audience, the firm observed that items that are trendy, collectible, and functional are essential for engaging these customers.

Toys and collectables, along with exclusive promotions on those products, are showcased on the store’s social media and e-commerce platforms to cater to the kiddults’ inclination to find items online at affordable prices. 

Additionally, artificial intelligence has been integrated to enhance store layouts, personalize customer interactions, and optimize marketing strategies.

“Kidults seek something distinctive to showcase their individuality,” Tsoi remarked, noting that the company has partnered with various intellectual properties to develop products that satisfy kidult demands, such as Sanrio and Roblox.

Thailand as a crucial growth market

Tsoi characterized Thailand as a pivotal element of the brand’s regional strategy. With a thriving youthful demographic and escalating urban development, the nation provides an advantageous environment for growth. 

He pointed out that the toy and gaming sector in Thailand is anticipated to expand at a compound annual growth rate of 7.5% over the following five years. 

“Thailand’s dynamic retail landscape and its enthusiastic reception of trends render it an ideal market for innovation,” he added.

To leverage this opportunity, the company intends to enhance its presence in high-traffic areas and renovate existing stores, such as the forthcoming remodel of the IconSiam branch, which will host a grand reopening celebration on January 9, 2025.

Future outlook 

The CEO of Toys“R”Us Asia expressed optimism in achieving single-digit growth propelled by strategic measures to boost the kidult segment’s contribution, while sustaining strong growth in traditional toy categories.

Key factors include:

• New store openings: Expanding the footprint in targeted locations.
• Enhanced customer experiences: Utilizing technology to create seamless, engaging interactions.
• Exclusive product launches: Continuously refreshing the product assortment to meet varied customer expectations.

“The essence of Toys“R”Us is happiness,” Tsoi concluded. “Our mission is to share that happiness with as many individuals as possible, in innovative and surprising ways.”