Ingo Kretzschmar, CEO of the bookchain Thalia, is planning a major expansion into the toy retail market. According to Kretzschmar, Thalia envisions the potential for approximately 150 toy stores, a segment that could generate nearly 400 million Euros, representing about 18 percent of the company’s total revenue.
Thalia has already begun building its physical presence, acquiring 40 stores, many of which currently operate under the names Krömer and Toysino. Moving forward, Kretzschmar stated that all these locations will be consolidated under the brand “Spielzeit”. He noted, however, that the Münster-based children’s department store Mukk will remain an exception due to its highly established brand status. Furthermore, the Thalia executive plans to investigate other potential cities where a large children’s department store might prove viable, estimating a potential addition of ten to fifteen such locations, rather than expanding to a hundred.
Regarding the operational experience in this new field, Kretzschmar reported that the initial results have been positive. Sales in the test locations have been significantly higher than expected. To achieve this increased revenue, Thalia has strategically increased its staffing levels and placed greater emphasis on expert consultation and customer experience. The company’s approach emphasizes that initial investment is crucial for success. He concluded by stating that modern shoppers no longer just want to buy items; they want advice, the opportunity to try things out, and an engaging exchange, particularly when shopping for toys.
