When it comes to toy stores, the concept of experiential retail is pretty hard to distinguish from the offerings available in amusement parks. This point is clear in Camp stores, a new, small chain of experiential toy stores that feature rotating play themes and invite parents to visit for the day to keep their kids entertained.
The changing themes mean that families can return again and again, without much fear of growing bored. Thus for parents who sense that their children don’t want to visit the library again or are unwilling to pay for trips to a zoo or museum every day, Camp likely seems like a godsend. Kids are encouraged to check out interactive displays and can play with virtually everything in the store. There are no entrance fees or minimum purchase requirements.
But without inducements to buy, can Camp make any money? The toys are certainly available for purchase, but many parents note their plans to keep track of their children’s preferred toys, then order them from Amazon at a lower price than the small retailer is forced to charge. Such showrooming has been a substantial challenge for many retailers, including those now-defunct toy companies like FAO Schwartz and Toys ‘R Us that might once have competed with Camp.
The founder of the company sounds unworried though, noting that in addition to the free experiences and play spaces, Camp offers fee-based programs. For example, parents can pay an hourly fee to sign their children up for craft demonstrations that help them build their own snowglobes, exercise-oriented yoga or tumbling classes, or performance instruction in live music or stand-up comedy. And if the parents have simply had enough, they also can pay for drop-off babysitting services provided onsite.
Another stream of revenue comes from sponsorship and product placement opportunities. Toy brands can sponsor a particular theme for the play spaces, ensuring that their products are among the ones most accessible to the children. The opportunities go beyond toy companies though. A paid cooking program relied on a sponsorship from Bounty paper towels, and a seed-growing instructional class received support from Scott’s Miracle Grow.
Notably, the five stores opened thus far all are located in neighborhoods with substantial populations of young, relatively wealthy families. In New York City for example, the 5th Avenue location is nearly the only play-oriented space for blocks. For parents desperate to get their kids out of the house, to burn off some energy, the value that Camp offers might be so great that they will do anything, including buying stuff, to keep it around.
Discussion Questions:
- How is Camp different from other toy stores that have failed?
- Do you believe it will be successful?
- How do you expect the financial ratios discussed in Chapter 6 to differ for Camp, Amazon, and Walmart in the product categories that Camp carries?
Source: Margot Boyer-Dry, “This Toy Store Invites Children to Play. But Will It Sell Anything?” The New York Times, December 19, 2019; Lauren Debter, “Camp Wants to Be America’s Favorite Place for Toys. Selling Them Is Secondary,” Fortune, December 14, 2019.