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Griffin Morris, VP of Product, had the opportunity to sit down with Amy Stulick at the San Fernando Valley Business Journal to talk about Toys "R" Us's new real estate strategy. 

Here is the excerpt from the article describing and our take on the Toys "R" Us comeback. Originally posted here. 

Spatial.AI specializes in using data to help retail clients decide where to open stores. Griffin Morris, co-founder and vice president of product, said Tru Kids’ first two locations checks many boxes, but the companies could have honed in on their ideal client base a bit more.
“We are measuring data in communities that captures, in aggregate, what is this community (to businesses). On our website, we have over 70 different segments of behavior,” Morris explained.
“Some of these are related to families and kids and toys. We have segments like nerd culture, connected motherhood and family time, that are the types of segments, based on our analysis, we’d expect that to be the types of area where a toy store would want to focus on areas where there’s a lot of those behaviors, specifically.”
Finding locations within large urban markets could mean looking for areas that host family activities. Studying behavior and interests of the community rather than traditional demographics could help optimize sales, Morris said.
“The cost is going to be lower for their brick-and mortar-stores. Compared to brick and mortar sales before, they’re not going to need to make as much sales from that location as they used to for those bigger footprint stores,” Morris concluded. “I’m very confident in saying they will drive e-commerce sales with the strategy.”

Below is our Geosocial analysis for the new Toys R Us locations:
Heatmap of Nerd Culture segment for proposed location in New Jersey
Heatmap of Connected Motherhood segment for proposed location in New Jersey.
Heatmap for Connected Motherhood segment for proposed location in Houston.  

The data shows low scores for Nerd Culture and Connected Motherhood in both proposed store locations. Toys R Us could benefit from looking at other locations with higher scores. 

Jimmy Chase
Head of Marketing & Design /

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