Retail Toy Store and Learning Center
Year 1: $2,582,235
Year 2: $3,269,658
Year 3: $3,744,458
Use of Proceeds
Retail Space, Business Infrastructure, Working Capital
Additional Documents Available
The operating Company is a magical place that “celebrates play” and intends to become one of the most highly recognizable brands in the marketplace. The Company’s Value Proposition is to offer families and children in the Downtown Los Angeles area an innovative and creative toy shopping experience through the use of fully immersive themed store areas, and giving customers the opportunity to play with toys as well as buy them. In addition to an unconventional sales floor with a friendly staff that is knowledgeable about all aspects of the toys being offered, the company works with parents and children by offering them learning opportunities through play and regular children's classes in art, science, robotics and "tinkering".
The new location will also provide party hosting, allowing children to take advantage of its distinctive space to play and celebrate in a family friendly environment. The combination of these services and the central and convenient location makes the Company unique among toy stores.
There are several ways to drive business to the Company’s toy stores. Building relationships with concierges of all downtown hotels by hosting a pre-opening party as a meet and greet will be one strategy employed. Another will be passing along discount cards as a Welcome Gift to guests checking in with children or business travelers with children. In addition, agreements can be made with Tour Bus operators to add a stop at the store for an hour of private shopping before store hours. Sponsoring local public radio stations will help build the brand. The newly opened Metro between Downtown and Santa Monica will create an opportunity for in-train car advertising of the store to Westside travelers to Downtown Los Angeles. Setting sales goals for each retail store employee will add extra incentive to meet daily sales numbers.
The main priority is to make the store's presence known to the local population and the public traveling to LA. Hiring a publicist would aid in the managing of local and national interest in this innovative toy store. Having articles in a variety of consumer publications that are targeted at local residents and business people will help capture the resident market. Promoting the toy stores in publications that are offered to travelers in hotel rooms would establish the business as another "must see" location in LA. The fact that there is no toy store like those operated by the Company will guarantee local press coverage. In addition, utilizing SEO services to optimize the store's website will drive traffic that will increase the website's presence online, thus allowing customers from outside the LA market the opportunity to purchase the Company’s unique toy lines.
Key Risk Factors:
Big Box operators have the capital and brand recognition to establish themselves in any market and squeeze out boutique type operators
The most likely exit strategy to be employed by the Company will be acquisition by 2021. Plan "B" would be a merger by 2021. The least likely scenario would be a leveraged buyout.