Child World
| Corporation | |
| Industry | Retail |
| Fate | Liquidation |
| Founded | 1970 |
| Defunct | 1992 |
| Headquarters | Avon, Massachusetts |
| Products | Toys, electronics, board games, dolls, and video games |
| Website | None |
Child World was an American chain of toy stores that was founded in Avon, Massachusetts, in 1970 by Joseph Arnesano. Child World once boasted 182 stores and revenues of approximately $830 million annually. From 1975 until its closure Child World also operated the Children's Palace chain of stores after acquiring it from Kobacker Stores, and later incorporated most of the aesthetic design features from the latter chain into Child World stores.
After the acquisition of Children's Palace in 1975, Child World became the second largest toy retailer in the United States after Toys "R" Us, its chief competitor. In many areas Child World stores were operated close to Toys "R" Us locations.
Child World also began incorporating elements of the Children's Palace store design into its stores that opened post-merger, with many of the new stores taking on a castle-like design (see below).
In 1981 the chain and Cole National Corporation, a retail ownership group that is now a division of Kohlberg Kravis Roberts, announced that Cole National would own the chain's stores.
Into the early 1990s, Child World was led by then-President Peter Hayes. The chain was known for, largely, a 'warehouse' style of merchandising, with long aisles and so-called "over-stock" storage above selling-floor-level shelves.
Although sales had begun to decline by the late 1980s, in 1989 the chain announced a new 29,000 sq ft (2,700 m2) store prototype designed to appeal to customers and real estate developers alike. The first store remodeled into the new prototype was in Framingham, Massachusetts, near the Shoppers World mall and key competitor Toys "R" Us, just one block away. Initially, the prototype was well-received, with strong first-day openings, and good performance in the critical Christmas selling season. Owing partly to that success, Child World management announced that the new prototype would be used to renovate 11 existing sites, and new market expansion would be targeted in 1990, 1991 and 1992 using the new design. However, Child World would not have the chance to implement the design, as problems began to arise.
While the focus of Child World's management was primarily on growing the brand, a recession that began in 1990 and continued into 1991, combined with the lack of a 'must-have' toy (such as Cabbage Patch Kids), helped to send Child World into a slump that only worsened, leading to the company's demise. Peter Hayes and a large portion of Child World's executive board were fired in 1990 and Cole National began to restrict capital to the stores. As a result, Child World was unable to procure their needed merchandise for the upcoming holiday season, and sales dropped.
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