Creative Kidstuff opened in Minneapolis' Linden Hills neighborhood in 1982, founded by Cynthia Gerdes. She later sold it to Myron Kunin, the founder of Regis. After Kunin's death in 2013, it was sold to his son Tim Kunin's Seattle-based charity company Greater Good. Roberta Bonoff has remained the retailer's constant since its inception. As the company's president and chief executive since 1998, she is leading the company through a difficult retail landscape dominated by Toys 'R' Us, Target, Wal-Mart and Amazon. The company closed stores in Des Moines, Maple Grove and in airports. It supplemented its online presence by purchasing Sensational Beginnings in 2013. We asked Bonoff about the toy market and how Creative Kidstuff is positioning itself. Some excerpts:
Q: What are the biggest changes happening in the toy industry?
A: People in retail are trying to figure out how to create their own identity. When it's all so homogeneous, you have to separate out, sell as a specialty retailer and make enough margin. Specialty retailers are struggling to exist in this climate.
Q: The toy industry seems overwhelming with choices, but I've heard you say there's actually been a loss of innovation.
A: The manufacturing side has had a lot of mergers and acquisitions. It tamps down innovation. We're having trouble finding basic products when vendors drop them. We struggled to find a good finger-paint. We just found a brand based in the U.K.
Q: In June you launched a wholesale division to help small, specialty toy retailers find products like that. How's that going?
A: We're trying to share the amazing, innovative products that we see when we go to Frankfurt [Germany] or the Nuremberg [Germany] toy fair, which is the world's largest toy fair. We think other specialty retailers want those too, just like we do. We are serving ourselves and other specialty retailers who don't or can't travel to these shows like we do.
Q: You find small-batch toys in Europe that haven't been safety tested in the U.S. Your company sometimes pays for U.S. testing?