Copyright Adweek
Most people know Build-A-Bear Workshop as a toy store where shoppers create customized stuffed animals. But the brand stretches further than its physical locations, according to Sharon Price John, president and CEO of Build-A-Bear. At the Brandweek conference in Atlanta, John outlined how the brand has expanded its revenue beyond physical retail sales. A major part of the plan to diversify revenue has been to widen Build-A-Bear’s audience beyond kids. Teenagers and adults now make up 40% of the company’s sales, doubling over the past six to seven years. “We figured out that the brand was a lot more stretchable than had been preconceived,” John said. “Our biggest opportunity was to elevate out of the place, and recognize that the brand is more than the workshop.” Winning over Wall Street That broadening of customers has helped get the brand noticed by Wall Street, with Build-A-Bear’s share price rising 2,000% over the past five years. Even though Build-A-Bear reported four consecutive years of growth, it wasn’t enough to win over investors, John said. Part of the challenge was that Build-A-Bear’s model of experiential retail doesn’t include a significant amount of competitors, making it hard for investors to analyze its business strategy. Build-A-Bear had to sell investors on the storytelling behind the brand, she said. Since 2020, Build-A-Bear has leaned into digital sales and the popularity around nostalgia and comfort products. The company’s also invested into intellectual property to license Build-A-Bear to brands including Harry Potter and Hello Kitty. In one example, Build-A-Bear created a product aimed at girls between the ages of 7 to 9 called Honey Girls, which was then turned into a film by Sony Pictures Home Entertainment in 2021. “We wanted to bring story and character arcs to life as sub-brands for Build-A-Bear,” John said.
