Baby Steps

Implications: 1. Make room Babies R Us. BB&B is starting small but has the clout to make an impact in this market segment.  

2. Cradle to grave selling mentality at BB&B a good thing

3.  Good Margins, not highly seasonal, limited markdowns limits the BB&B risk factor.  


Analysis: Well, someone needed to step up and I guess 8 stores is a start. Babies R' Us has done a excellent job in this category but BB&B in time can do more with a "cradle to grave" opportunity, selling past infant and toddler goods and into their core business. I'm sure they will be best served in E Commerce versus bricks and mortor initially.  This is truely an opportunity to gain marketshare and diversification in a business sector that is somewhat of an open playing field for big players as it's made up of so many Mom and Pop doors. This is not an off-price business and generates good   margins for the retailer. It is driven by grandparents who spend more on their grandchildren than they did on their own children because they now have money to spend. There is nothing quite like a Birth, Wedding, or for that matter a Funeral to get the emotional wallet open with little regard for "shopping around". A good strategic move for BB&B in my opinion.