Toy store closures: a tough fight ahead against the web giants

It is increasingly difficult for stores specializing in games and toys to compete against online giants, conclude several players in the retail sector after the closure of three stores in a few weeks in Quebec.

Remember that two Toy “R” Us branches (Quebec and Drummondville), as well as the Benjo store, recently announced that they will soon be closing their doors.

“It’s definitely not easy for anyone in retail right now. You have to know how to reinvent yourself. […] You have to invest either a lot of time or a lot of money in order to stand out, often both. And sometimes, even that is not enough,” explains the general director of Cadeau KID, Paule Rancourt.

The latter adds that consumers shop more online before going to the store and have very specific requests. You therefore need to have the right product and the right price.

The challenge of Chinese platforms

The general director of the Quebec Retail Council, Damien Silès, is also concerned to see that companies in different sectors of activity must now fight against Chinese platforms like Temu which sells everything, and this, “at unbeatable prices.

“A large majority do not respect safety standards and flood the market. It is very difficult for Canadian customs to check all these products, but it also creates unfair trade for our traders. […] If we are governed by the laws of Quebec and Canada for security, they can return much more easily.

“We are really in a very complicated period for our businesses and we need support from merchants because we find ourselves completely neglected in this regard,” he adds.

Customer experience, the key?

According to M^me Rancourt retailers who are able to stand out from the crowd are those who succeed in offering unparalleled customer service. She believes that they will do better because of their knowledge of the needs of their customers whom they have managed to retain.

This opinion is also shared by Laurent Côté, buyer at the Quebec Toy Club. The company prioritized training and adaptation in order to stay relevant, a decision that is paying off as the store is still doing well.

“Our staff is even more trained on the products for the best possible experience and consumers love that. We also stay on top of how the market is changing and try to be creative. A few years ago, we didn’t make school supplies, but we developed this niche. It’s the same for snow activities and sports.”

Despite everything, M^me Rancourt wonders what direction this will take over the coming years, not only for toy stores, but for all merchants.

“Will they be able to match the prices of giants like Amazon? And will customers be willing to understand that the retailer can’t necessarily offer the same prices as these online giants?»