The Norman Transcript

February 16, 2010

Toys R' Us launches its own baby products

By Joan Verdon

Toys "R" Us is banking on the power of the Babies "R" Us brand name to sell infant formula, diapers, wipes, laundry detergent and bottled, purified water in its stores.

The Wayne-based retailer officially announced the creation of the branded line of products recently after quietly introducing them into its stores at the end of last year.

"We are proud to leverage our position as the baby products authority to offer parents a line of must-haves for their babies from a name they rely on and recognize," Toys Chairman and CEO Jerry Storch said in a statement. The company said some of the Babies branded products are being priced at up to 50 percent less than other comparable brands.

A gallon of purified water, intended to be used in making baby formula, costs 99 cents. Powdered formula is priced at $12.99 to $15.99.

The products will be sold only in Toys "R" Us and Babies "R" Us stores, and help support Storch's goals of returning the stores to their former position as a leading destination for staples such as diapers, and of integrating baby products back into the toy stores.



The retailer has had a house brand for baby products in the past, called Especially for Baby.

For the brand to be a success, it will have to meet or exceed the high expectations parents have for baby products, said Robert Passikoff, founder of Brand Keys Inc., a brand equity research and consulting firm. "Expectation levels regarding those products are extraordinarily high," Passikoff said.

"People are less likely to take a chance on products related to the well-being of a child, than they would, say, on a store brand extension of peanut butter," he said.

For baby products, perceived quality often is more important than price, he said.

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