Babies "R" Us offers one-stop shopping

Stores grow to more than 250 strong in 10 years

By Lisa Casinger -- Kids Today, 4/1/2007 12:00:00 AM

Babies "R" Us joined the Toys "R" Us Inc. family in 1996 with its first store in Westbury, N.Y. Now 253 stores strong, the retailer carries everything from cribs and furniture, gear, apparel and room décor to accessories, toys, gifts and more.

The company says it is the "quintessential source for everything new and expectant parents need when preparing for baby's arrival, setting up a nursery, traveling with a newborn and establishing a safe environment for baby."

The parent company, Toys "R" Us, was taken private in 2005 when it was purchased by an investment group consisting of affiliates of Kohlberg Kravis Roberts & Co., Bain Capital Partners LLC , and Vornado Realty Trust for $6.6 billion. Each partner owns one-third of the company.

Target alumni Gerald Storch, who became chairman and CEO of Toys "R" Us in February 2006, has said that the company plans to maximize and accelerate the growth of the Babies "R" Us business while exploring ways to leverage the strength of the Toys "R" Us franchise. This has led to the opening of six "side by side" stores, putting both brands under one roof.

The Babies "R" Us division has been doing well with no less than 9.6% revenue growth during the past three quarters. Comparable stores sales increased 5.7% in 2005.

Deborah Derby was named president of Babies "R" Us in May 2006. She leads all aspects of merchandising, marketing and store operations for the specialty chain. She joined Toys "R" Us Inc. in 2000 as vice president, human resources for the Babies "R" Us division and since then has held senior management positions in human resources and legal and corporate communications for all of the company's divisions worldwide.

Babies "R" Us' guest services include what is perhaps the most widely used in-store and online baby registry in the industry. The company says nearly 50% of all first-time and expectant mothers turn to the retailer for their wish list of everything from diapers to play yards.

Parents who register in person receive a packet of information including a resource guide, must-have check list and a choice of shower invitations or insert cards.

Stores also have Mother's Rooms, designated expectant-mom parking, complimentary gift wrap and a special orders desk.

More than 100 stores also are home to Kiddie Kandids, a professional children's portrait studio specializing in newborn and toddler portraits. Because the studios are completely digital, parents can instantly view and customize the portraits and take them home the same day.

Aside from carrying a wide array of product, the retailer turned its eye to fashion in 2005 by adding an exclusive product line by Wendy Bellissimo.

Known as the "nursery designer to the star," Bellissimo has designed nurseries for celebrities like Brooke Shields, Kelly Ripa and James Denton of "Desperate Housewives." Since January 2005, Babies "R" Us has been the exclusive retailer of Bellissimo's nursery furniture, bedding, décor, plush and diaper bags. Most recently the line has expanded to include apparel as well.

The retailer reaches its customers through direct mail pieces and catalogs, Internet advertising and print ads in national parenting publications.

The retailer also drives traffic by hosting complimentary educational weekly seminars and other in-store events for parents and grandparents that feature guest speakers like local lactation consultants and childbirth educators and are followed by Q&A sessions. In addition, Baby Fests are held on the second Saturday of each month and cover topics like breast-feeding, baby health and wellness and baby safety. Other Baby Fest topics include how to host the ultimate baby shower, choose age-appropriate toys and preserve holiday memories. The stores provide car seat inspections and product demonstrations as well.

"We strive to be more than a retailer dedicated to baby products," Derby said. "We are a resource for new moms and dads as well, which, ultimately, contributes to our position as the baby authority. The Baby Fest events allow our stores to become a hub for parents to meet, share common experiences and gain some great insight into the challenges they will face as caregivers. By partnering with topic experts, we are able to provide our guests with authoritative information, as well as products, which will help them make informed decisions."

The stores are divided into departments: clothing and layette (which range from preemies to 48 months), health and safety, infant toys, furniture, nursery, bath and potty, feeding, activity, baby gear and books, music and DVDs.

Janet Taake, senior vice president, general merchandise manager, joined the company in June 2006. She oversees all merchandising and product development decisions and works closely with major vendors like Carter's, Baby Jockey, Graco and Evenflo to direct buying decisions and influence product development. Taake also collaborates with the Babies "R" Us marketing team to direct the in-store presentation and promotion of products.

Babies "R" Us is a $2.3 billion business and it continues to add about 20 new stores each year.

Derby says the company is in "an aggressive growth phase" and looks for new locations with populations that would benefit from the products, services, and convenience a one-stop shopping destination like Babies "R" Us offers. "We are always on the lookout for retail locations where our stores can thrive."

Babies "R" Us is arguably the largest baby specialty retailer in the world and Derby says it competes on authority.

"Babies 'R' Us has the broadest assortment of baby products available and knowledgeable associates who are able to share their expertise to assist guests in choosing the right products," she said.

"We continue to see lots of opportunities in growing and differentiating our business. The team works diligently to identify and stay at the forefront of trends in the industry and to have an ongoing dialogue with our customers- new and expectant parents."

BRU stores offer expectant mom parking, free gift wrapping, Mother's Rooms and more to make shopping more convenient.

Aside from many educational seminars and in-store events, Babies "R" Us also offers car seat installation for new and expectant parents.

Gear, including car seats and strollers, is a big category for Babies "R" Us, and it carries an impressive assortment of brands, designs and styles.

Clothing and layette (for preemies to 48 months) include everything a parent needs to outfit their babies.