Exclusive research: From the retail floor
Want to know how your store is doing in comparison to other stores?
By Daphne Garland-McLean -- Kids Today, 10/1/2009 12:00:00 AM
Want to know how your store is doing in comparison to other stores? This report aims to give specialty retailers a glimpse into what's going on in the juvenile industry regarding merchandising, as well as insight on how retailers are using creative tactics to improve their bottom line.
Most juvenile specialty retailers carry products for the infant to 2-year-old age group. In fact, more than nine out of 10 responding retailers carry products for this age group. This is up four percentage points from 2007, when this study was last conducted. Retailers carrying products for the 3- to 7-year-old age group jumped 10 percentage points, increasing from 72% in 2007 to 82% this year. An increase occurred among retailers carrying products for the 8- to 13-year-old age group also; up five percentage points. One-third of retailers carry products for kids age 14 years or older. This is down slightly from the 37% of retailers who carried products for this group two years ago.
Looking at sales, nearly four-fifths of responding retailers say sales in the infant to 2-year-old age range account for the majority of store sales. Another 12% of juvenile specialty retailers list the 3- to 7-year-old age group as having the most sales.
To rack up these sales, retailers are adjusting advertising and promotional strategies to bring customers into stores. A whopping 94% of juvenile specialty retailers have implemented a Web site. That's up from the 83% of retailers who had a Web site in 2007. Additionally, the Internet is being used as an advertising tool by more than seven out of 10 retailers, compared to just two years ago when less than one-half of retailers were using this form of advertising.
With a median ad budget of 5% of sales, retailers are using dollars wisely and choosing the best media advertising for their stores. And, while more traditional advertising vehicles such as the Yellow Pages and direct mail are still in use, a significant decrease in usage has occurred over the two-year span, 2009 to 2007, for both methods. Interestingly, newspaper advertising has remained steady during the same timeframe, with about 45% of retailers using this advertising medium.
Retailers' use of the Internet is providing alternative outlets for reaching customers and promoting stores. One such method is social media, with 45% of juvenile specialty retailers using Facebook and 39% using Twitter.
So, just what are juvenile specialty retailers carrying? According to responding retailers, cribs, changing tables, crib mattresses and dressers/chests are furniture products carried by more than three-fifths of juvenile specialty retailers. When it comes to decorative accessories, nearly seven out of 10 carry mobiles, while 65% of retailers carry photo frames in stores. Seventy-one percent of kids retailers sell crib linens and just over one-half carry comforters/spreads/duvets/quilts and decorative pillows. Strollers top the chart for the infant gear category, with nearly six out of 10 retailers carrying this product. Car seats are just as widespread with 55% of retailers selling them. And, for the toy category, developmental toys, plush and infant/children's books are all popular among retailers with 77% carrying developmental toys and 69% of juvenile retailers carrying both plush and infant/children's books.
Retailers report crib mattresses, cribs, glider rockers, strollers and twin mattresses as the most profitable products. The best-selling price points in these categories are $170 for crib mattresses; $499 for cribs; $515 for glider rockers; $330 for strollers; and $199 for twin mattresses.
Retailers carry products for these age ranges
Percentage of retailers carrying
| 2009 | 2007 | |
| Infant-2 years | 92% | 88% |
| 3-7 years | 82% | 72% |
| 8-13 years | 53% | 48% |
| 14 years or older | 33% | 37% |
Advertising and promotions
Percentage of sales dedicated to ads and promotions
Medians
| 2009 | 2007 |
| 5% | 5% |
Percentage of retailers using
| 2009 | 2007 | |
| Internet | 71% | 46% |
| Yellow Pages | 45% | 60% |
| Newspaper | 45% | 46% |
| Direct mail | 43% | 54% |
| TV | 33% | 42% |
| In-store events, e.g. demos, open houses | 29% | 23% |
| National/regional/state/local magazines | 29% | 21% |
| Sponsorships, e.g. charity/sports | 22% | 30% |
| Radio | 20% | 29% |
Most popular Web site features
Percentage of retailers
| *Other includes newsletter sign up, store history, store departments and special requests. | |
| Store info, hours, directions | 89% |
| Store contacts with e-mails | 89% |
| Product images/brands, etc | 81% |
| Online ordering for customers | 55% |
| Gift registry | 51% |
| Discounts or coupons | 43% |
| Consumer/educational info | 40% |
| Links to manufacturers' Web sites | 38% |
| Blogs or discussion boards | 19% |
| *Other | 6% |
Best-selling price points
Medians
| Products retailers ranked as having the highest profit margins are noted in bold. Source: Kids Today Juvenile Store Operations and Merchandise Report, 2009 |
||
| Cribs | Cribs | $499 |
| Other Furniture | Twin headboard | $300 |
| Twin mattress | $199 | |
| Bunk beds | $700 | |
| High chairs | $200 | |
| Glider rockers | $515 | |
| Toy chests | $190 | |
| Changing tables | $200 | |
| Crib mattress | $170 | |
| Textiles | Crib comforters | $147 |
| Crib sheets | $15 | |
| Twin sheets | $15 | |
| Twin comforters | $88 | |
| Infant Gear | Strollers | $330 |
| Car seats | $280 | |
| Decorative Accessories | Table lamps | $50 |
| Photo frames (5”x7”) | $20 | |
| Area rugs (5'x8') | $149 | |
The Sales Floor
Percentage of retailers carrying
| FURNITURE | |
| Cribs | 67% |
| Changing tables | 65% |
| Mattress, crib | 63% |
| Dressers/chests | 61% |
| Bassinets | 59% |
| Glider rockers/rockers | 57% |
| Play tables and chairs | 57% |
| Bookcases | 55% |
| Toy chests | 55% |
| High chairs | 53% |
| Nightstands | 49% |
| Beds, twin and/or full, bunks | 47% |
| Desks and/or desk chairs | 45% |
| Mattress, twin and/or full, bunks | 39% |
| DECORATIVE ACCESSORIES | |
| Mobiles | 69% |
| Photo frames | 65% |
| Lamps/lighting fixtures | 57% |
| Posters/prints/other wall decor | 51% |
| Mirrors | 43% |
| HOME TEXTILE PRODUCTS | |
| Crib linens, sheets, covers, bumpers | 71% |
| Comforter/spread/duvet/quilt | 53% |
| Decorative pillows | 53% |
| Other bed linens, shams, dust ruffles, blankets | 49% |
| Throw blankets | 45% |
| Area rugs | 45% |
| INFANT GEAR | |
| Strollers | 59% |
| Car seats | 55% |
| Infant feeding equipment | 47% |
| Play yards | 45% |
| Bouncers/carriers | 41% |
| Swings | 39% |
| Exercisers | 35% |
| TOYS, BOOKS, GAMES | |
| Developmental toys | 77% |
| Plush | 69% |
| Infant/children's books | 69% |
| Games | 43% |
| CDs/DVDs/videos | 39% |
| Child-rearing books | 35% |
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