Smyths Toys’ Warehouse-Like Operational Formula to Maximize Profits
Smyths Toys is Europe’s largest toy retailer. They operate more than 90 stores across the UK and Ireland. They’ve been in business for over 90 years and have developed a warehouse-like operational formula to maximize their profits. Read on to find out how Smyths Toys has grown their online sales by over 100 percent since 2016.
Smyths Toys is Europe’s largest toy retailer
Smyths Toys is an Irish toy retail company with over 200 stores in the UK, Ireland, and Germany. The company specializes in toys, baby products, outdoor equipment, and video games. Smyths Toys was founded more than thirty years ago by four brothers in Galway. It is one of the most successful Irish businesses in the world, and their products have sold well all over the world.
The company is headquartered in Ireland and has 214 stores in the United Kingdom, Ireland, Germany, and Switzerland. It employs about 5,000 people in the UK alone, and in 2015 it acquired stores in Austria and Germany. The company sells toys, outdoor equipment, video games, and other play items for children of all ages. Smyths Toys has recently begun expanding in central Europe and has rebranded the former Toys R Us division.
Smyths Toys operates over 110 stores across Ireland, the UK, and Germany. Its European network contributed EUR339 million in sales last year and EUR13.7 million in profits. In the UK, Smyths opened a new store in Exeter last week, and it is thought to be planning a further store in Carlisle, which is near the German city of Hamburg.
Smyths Toys acquired Toys R Us’ European business in 2011 after the company went bankrupt. The retailer had 111 outlets in the UK, ninety in Germany, and 93 in Austria and Switzerland. Smyths Toys will be Europe’s largest toy retailer, and the acquisition of Toys R Us’ European stores will nearly double the company’s size.
It has grown online sales by 100 percent since 2016
Since 2016, Smyths Toys has been growing online. Their online channels are more complex than ever, with click and collect, pre-ordering, and home delivery options. The company was seeking a fraud solution that could effectively manage these new channels. Cybersource provided the right solution for this growing company. The company utilises a dedicated Cybersource risk analyst who continuously adapts their fraud rules to address new risks.
The Smyths brand started life in 1986 and has since branched out into multiple sectors including gaming and baby toys. Today, Smyths has over 110 stores across the UK, but is also highly successful online. They use social media to reach their target audience and provide a wide selection of products and services. The online store has a wide range of products, including construction sets, video games, and outdoor toys.
The UK toy market saw Smyths dominate the Christmas period, with the strongest growth of any retailer. Its market share jumped 1.6 percentage points to 11.3%, putting it second only to Amazon. Overall, UK consumers spent PS19 million on toys, a 1% year-on-year increase. Smyths Toys, Amazon, and Argos had strongholds in the toys sector over the Christmas period.
Smyths’ digital transformation has paid off. In the past decade, the company has tripled its business in Britain, with 28 stores on either side of the Irish Border, and 70 stores in the UK. Group sales are approaching EUR600 million, and Smyths is on track to challenge Toys R Us as number one in the UK market by the end of this year. The company already owns the Irish retail sector, but is now looking to take over Toys R Us’s dominance of the UK market this year.
It has kept fraud down to less than 0.1 percent of turnover
Smyths Toys has boosted its online sales by 100 percent since 2016, largely thanks to an aggressive expansion strategy. The company maintains low levels of fraud, which are now less than 0.1 percent of its turnover. The company offers home delivery, pre-ordering, click and collect and digital downloads for its products. It has a dedicated cybersource risk analyst who works to adapt the Decision Manager rules to emerging fraud risks.
It has a warehouse-like operational formula
Smyths uses a warehouse-like operational formula to optimize their store performance. Their 25,000 square-foot warehouses can handle upwards of 13,000 different product lines, such as bikes and tricycles. They can also shift several hundred sandpits and 120 trampolines, so it’s not hard to figure out how much of each one of these things Smyths can shift in a week. Sure, you’re not going to find Hatchimals on their shelves, but that’s okay. The formula is designed to increase customer satisfaction and overall store productivity.
ZetesAthena was implemented in Smyths Toys’ SAP ERP system. The company can now receive orders from customers through mobile devices and get alerts when shelves are low on certain items. With ZetesAthena, the company can centrally manage inventory, contributing to improved loss prevention. The solution allows Smyths Toys to use a perpetual inventory count, improving the accuracy of its sales data.
Founded in 1987, Smyths is one of the largest Irish retailers outside the country. The company operates 28 stores on either side of the Irish border and has 70 stores in the United Kingdom. Sales are now approaching EUR600 million, and the group is on track to take on Toys R Us as the UK’s number one toy retailer this year. They already own a huge part of the Irish market, but their foreign expansion has been highly secretive.
It has a strong commitment to customer satisfaction
Smyths Toys’ IT team recently decided to migrate its SAP landscape from its on-premises environment to Google Cloud. After evaluating the various options available, the IT team settled on SAP HANA on Google Cloud. The company’s strong commitment to customer satisfaction is reflected in their high level of customer service and support. To ensure that the move to Google Cloud would go smoothly, the IT team took the time to thoroughly test the migration process. The team was impressed with the console’s user-friendly layout and ease of use. The project was completed within a few days, including a sandbox environment to verify compatibility and ensure that the migration would run smoothly.
The company has developed a robust technology strategy to ensure a consistent customer experience across its stores. It uses SAP ERP to run its operations, and has integrated ZetesAthena for Click & Collect. The technology allows employees to label online orders with the customer’s details and then collect them at a store of their choice. They also print a receipt for the customer when they visit the store.
The company’s goal is to offer the widest selection of children’s entertainment products at competitive prices. Established in Galway, Ireland in 1987, Smyths Toys is one of the largest Irish retailers abroad. Its mission is to encourage creativity and learning in children, providing a diverse array of products that range from toys to outdoor play equipment and video games. Customers are encouraged to return to the store for additional items.