Toys ‘R’ Us shopper data insights can give toy makers and retailers an advantage

April 25, 2018 – CIO Toys ‘R’ Us is shutting its doors, meaning consumers will begin looking elsewhere for their toy needs. Meanwhile, retailers of all shapes and sizes are clamoring to grab Toys ‘R’ Us’ market share. Location data could uncover insights into who could win the “toy wars.” Location affinity data and analysis gives us clues and could be used by the Walmarts, Amazons and Disney Stores of the world to make smarter decisions about how they approach tomorrow’s toy market.

The Toys ‘R’ Us bankruptcy filing last year sent shivers down spines of toy makers and has sent other retailers scrambling to grab the longtime toy purveyor’s market share. We can expect most toy retailers to attempt to step in where Toys ‘R’ Us left off, yet the smartest ones of the bunch will use a variety of data analysis and insights to determine the best ways to take advantage of this new opportunity, whether they are retailers planning to boost toy offerings on store shelves or toy makers diversifying where they sell their products.

No matter what, it will be a challenge. According to a March 2018 CNBC article, even though Toys ‘R’ Us accounted for between 15 and 20 percent of toy sales in the U.S. last year, Jefferies analyst Stephanie Wissink estimated that about 10 to 15 percent of the store’s total sales volume will disappear for good once the retailer is gone, which could mean toy retailers will be fighting over slices of a smaller pie.

Mobile location data gives us clues

After Toys ‘R’ Us announced their intentions to file for bankruptcy, my company wanted to learn what sort of effect this might have on the toy retail ecosystem. Using our platform, which incorporates mobile user data to provide insights about retail shoppers and other audiences, we conducted a location affinity analysis to predict where Toys ‘R’ Us visitors might shop once the store’s locations were to close.

To continue reading Gladys Kong’s article for CIO, please click here. 

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *