ST, LOUIS – A St. Louis toymaker, who credits some of his business’ success to Toys R Us, tells 5 On Your Side the toy giant’s demise is a warning to other big box stores: “change or die”.
Dan Lauer, who created “Waterbabies” in the 90s, turned a “crazy idea” into one of the most successful baby doll franchises in history. The doll was unique to the toy industry in that time because a kid could fill it up with water, giving it a lifelike feel.
"I invented Waterbabies pre-internet,” he said. "And play still matters, thankfully."
Lauer said he is saddened by the announcement Toys R Us will close all of its stores by the end of year. The Waterbabies creator said Toys R Us allowed for him to showcase his entire product line, unlike any other big box store. Lauer said Toys R Us was one of his biggest customers, making up about 20 percent of his sales. The company was one of the first stores to put Waterbabies on its shelves.
“Being able to showcase it. being able to hand it to a customer worked magic for us,” he said.
The company confirmed the news it filed for Chapter 7 bankruptcy, which will lead to the liquidation of all sales.
The toy store, which has been in peril for some time, filed for Chapter 11 bankruptcy late last year. It was a move that was expected to restructure the business and keep much of the stores the same.In January, Toys R Us announced the closures of more than 180 stores. This was after Chief Executive Dave Brandon promised the bankruptcy court that "Toys R Us is here to stay.”
The commercial spaces Toys R Us currently occupies have an uncertain future. In many of the toy store’s locations, it is the anchor. Their big box store drives business to other stores. Without the company, not only will those neighboring businesses could be affected. Toy makers that rely on Toys R Us could also take a hit
What was once the most famous toy store in the country is now the latest casualty in an era where change was necessary to survive, Lauer said.
“With Toys R Us, they got caught with these large assets that not enough people went to,” Lauer said. “Buying patterns change. How we communicate with products change and they didn’t change with that…the world turned on them."
So, like the rest of the retail industry, Lauer will have to change too.
"We'll figure it out. We'll figure out a new path, a new day, a new way. but for some that are same old, same old, they are going to get caught."
He thinks his business will continue to thrive--despite the demise of one of his biggest customers.
