Product Diversification: The Comeback of Babies “R” Us
A popular brand that most millennials and Gen X individuals will strongly relate to is the Babies “R” Us franchise. Known for its top-notch baby products, it was a go-to resource for every parent. However, its parent company, Toys “R” Us, filed for bankruptcy, resulting in the closure of their brands in 2018. Against all odds, the cherished brand is back on the retail scene. This unexpected comeback is echoing within the retail corridors of another significant player – Kohl’s Corporation.
Babies “R” Us is not reopening standalone stores. Instead, they have partnered with Kohl’s department stores to facilitate their comeback. As part of Kohl’s latest strategy to reboot their performance and stay relevant in the fast-paced retail industry, the brand has allocated space within their stores to revive the Babies “R” Us franchise.
So, what’s in it for Kohl’s? This new arrangement presents numerous benefits for Kohl’s. Given the fierce competition in the retail sector, Kohl’s has strategically betted on Babies “R” Us to boost their customer base and, in turn, their sales. They are counting on the popularity and the emotional affiliation customers have with Babies “R” Us to drive footfall in their stores.
Interestingly, this isn’t the first time the retailer is allowing third-party vendors to occupy space in their stores; Amazon returns and Aldi groceries already have a share in the retailer’s establishments. Kohl’s approach is not solely about diversifying their product offerings but also about consolidating their retail business within a one-stop-shop framework.
By not limiting themselves to clothing and home products, Kohl’s has ventured into the baby products segment, which is a thriving market. In reimagining their store space, Kohl’s has investigated the potential profitability of the baby sector and leveraged it to counterbalance the uncertainty in other retail areas. This diversification contributes not only to their growth strategy but their risk-management approach in today’s volatile economy.
Kohl’s decision to home Babies “R” Us also pinpoints the trend of improving customer experience. Offering a broader range of product categories, from clothing and home dacor to baby essentials, fulfils the preferences of convenience-seeking customers. As today’s shoppers increasingly prefer to find all they need under one roof, this alliance expands their choices while saving them valuable time.
While skeptics may question the viability of integrating differing brands under one roof, it is not an entirely new concept. The retail industry is no stranger to collaborations. Successful retail collaborations, like that of Target and Ulta Beauty, have set the path for innovatively boosting customer footfall and diversifying product offerings.
As the retail sector evolves, this marriage between Kohl’s and Babies “R” Us reflects adaptation and innovation. If successful, it may accelerate further partnerships and redefine the traditional retail landscape. This partnership sets the stage for a dynamic retail industry wherein brands mutually support each other while creating an integrated, convenience-driven shopping experience for consumers.