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Tribune News Service
Tribune News Service
Business
Nicole Norfleet

Parents turn to local baby stores as big-box chains falter

MINNEAPOLIS — First-time parents-to-be Katie and Andrew Beiswenger bounced back and forth on more than 20 glider chairs at the Baby Grand store in St. Louis Park before they tried their luck testing car seats.

"I didn't know there were so many options," said Katie Beiswenger, who is about five months pregnant.

Especially for new parents, buying baby equipment can be daunting. But making the process harder is a dwindling number of places to shop in person. Big-box supplier Babies 'R' Us went out of business years ago along with Toys 'R' Us. Chain retailer Buy Buy Baby has been put up on the auction block in recent weeks. Stable big-box retailers like Target have growing-but-still-limited floor space for baby items. And furniture stores tend to sell most of their cribs, changing tables and other children's room fixtures online.

Yet as chains have tight sales space for children's gear and toys, Minnesota small businesses have found a niche offering experiential showrooms with attentive staff, including trained car seat experts. Shop owners say they are positioning themselves to grab more market share in the near future.

"I've gone to Nordstrom, and nobody can show me how to fold a stroller," said Alissa Montbriand, owner of local baby gift and supplies retailer Pacifier, which has several Twin Cities locations. "I think where the boutiques really can win in the baby category specifically is we spend so much time on training our team. ... It's just a higher level of training and interaction than you can usually find at big-box stores."

Expecting parents in some areas don't have a ton of choices for those who want to see items in person, an aspect that can be really important to find the perfect products for babies' sensitive bodies.

Some parents try to avoid buying products with certain chemicals and can even turn down a product if an item smells too strong.

Buying online, while convenient and sometimes cheaper than deals found in person, can have its own frustrations. Fabric and paint colors on the computer may not look the same as in person. Large bulky items like dressers might appear well built, but then turn out to be shaky after assembled.

"I'm not an online type of shopper," Andrew Beiswenger said. "I am a touch-and-feel-and-see type of person."

Beiswenger had issues when he first tried to lift an infant car seat on display from its base, but certified "child passenger safety technician" Anne Schletty was able to walk the Beiswengers through the process of locking and removing different models with the help of a fake passenger seat.

"It's very educational," said Katie Beiswenger, of Chaska. "I just feel like it's more personal."

Shaina Austin of Brooklyn Park took her 13-month-old son, Rhett, to Baby Grand to try out high chairs and find a convertible car seat. She placed Rhett in a chair — something she's not able to do in many other stores — and decided the tray felt too flimsy. Staff of the nearly 40-year-old upscale baby and child boutique then helped Austin find a car seat she liked.

"It's a big purchase. ... It can be scary when there are so many options, and it's good to have experts that can help you make the best choice," she said.

Having a store experience where kids can come in and play with toys and interact with staff is also important for many shoppers, said Erika Olson Gross, co-owner of Kinoko Kids toy store in south Minneapolis.

"(Parents) want that experience for their kids. ... I think that the thought of their kids growing up and never having been in a toy store, they don't want that," Olson Gross said.

The decline of Buy Buy Baby opens up more opportunities for physical baby retailers, said Neil Saunders, managing director for analytics firm GlobalData's retail division.

"First-time parents have a lot of items that need to be acquired, and many people like to do this in stores where they can learn more about the products and see what they are buying," Saunders said. "There is definitely an opportunity for small, local retailers."

Buy Buy Baby's impending departure will make smaller waves in the industry than when Babies 'R' Us closed because of Buy Buy Baby's smaller footprint, said Carol Spieckerman, a retail thought leader and president of Spieckerman Retail. Buy Buy Baby has about 120 stores.

Still, in the U.S. baby products market, which was valued at $28.97 billion in 2021 and is expected to continue to grow, every little bit of market share counts. Consumers in America are willing to pay high prices when it involves their baby's health, research shows. New products continue to come out with enhanced features and smart technologies such as mobile app connection.

"Specialty stores located near Buy Buy Baby stores may have the greater opportunity," Spieckerman said. "These retailers have the agility to specifically welcome Buy Buy Baby customers and localize promotions to tie-in with Buy Buy Baby store closures."

Stores like Baby Grand are expanding their product offerings to include more brands big-box stores carried.

"We are definitely going into some price points where we couldn't be competitive with Buy Buy Baby when you factor into their coupon situation," said Baby Grand owner Joe Roedler. "We do see another opportunity of another customer we can grab."

Baby Grand sold Chicco (pronounced "keeko") — which makes car seats, strollers, high chairs and more — seven to 10 years ago before the partnership ended as more chains began offering the brand. Baby Grand reopened the account with Chicco in the spring to sell some of its higher-end products. Baby Grand is also expanding its gear for the popular brand Maxi Cosi.

Before the pandemic, Baby Grand moved its Hopkins store to St. Louis Park and closed its St. Paul location. Now Roedler is considering whether he should possibly open another store.

"I think some vendors are starting to see the value of retail space," Roedler said.

In recent months, some companies have started to offer the store free or reduced-cost floor samples Baby Grand can use for customer demonstrations.

In the wake of the closure of Buy Buy Baby, Pacifier — which has four locations including a large store in the North Loop of downtown Minneapolis — plans to open another store in the metro area before the holiday season. In the future, Montbriand also wants to develop a private label with exclusive store designs of toys, blankets and other gifts.

"What's really unique about what we do is that curation and just narrowing it down to the best of. I think that's different than big box and could be better for some," Montbriand said.

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