Build-A-Bear Expanding Small-Store Format

Build-A-Bear Workshop, with 130 leases expiring during the next three years, will increasingly move to a smaller format in mall concourses that will continue to emphasize licensed products, company executives told analysts. The company opened 17 of the 200-square-foot concourse locations in Q2 ended June 30 and has 20 in place, including two at Mall of America outside Minneapolis. “You can expect to see a great percentage of our stores to become concourse shops in the future,” Build-A-Bear CEO Sharon John said. The concourse shops generate $500,000-$600,000 in annual sales, and cost about $100,000 to install. They occupy 80% less space than a full-size store and have shorter, three-year leases. The shops have been added in 14 states so far.

Meanwhile, Build-A-Bear expanded its pop-up locations at AMC theaters, adding 10 to the five that helped launch the concept last fall. The pop-ups were open in July, featured Wonder Woman, Minions and Transformer products tied to the movies. Build-A-Bear also has increased the number of stores aboard Carnival Cruise Lines to 25 ships from two a year ago and added locations at three Beaches resorts in the Caribbean. Build-A-Bear shares revenue from the pop-up stores with AMC, a spokeswoman said. Build-A-Bear net loss in Q2 ended July 1 narrowed to $1.5 million from $4.3 million a year earlier as revenue increased 2.8% to $77.2 million. The commercial revenue, which includes outbound licensing agreements with Spin Master Corp. as well as those for slippers and electronics, rose 160% to $2.1 million. Retail sales increased 0.6% to $74.4 million despite a 0.9% same-store sales decline. ]

Contact: Build-A-Bear Workshop, Jennifer Kretchmar, Chief Merchandising Officer, 314-423-8000, Jennifer@buildabear.com

J&J Snack Foods Adds Auntie Anne’s License to Soft Pretzel Business

The Auntie Anne’s pretzel shop chain which operates more than 1,500 stores in malls and travel centers, has licensed J&J Snack Foods to produce and distribute soft pretzels, wrapped hot dogs and sandwiches under its brand. Auntie Anne’s had been selling soft pretzels in grocery under its brand for five years, generating about $9 million in annual sales, J&J CEO Gerald Shreiber told analysts as the company released its Q3 earnings.

For J&J, the marks the first time it has taken a license for soft pretzels, a business it’s in under its own brands. It also sells Oreos churros and Minute Maid lemonade and frozen juice bars under license from Mondelez International and Coca-Cola Co., respectively. “They were building a business that had some potential and we think we can do it quicker and we can have better results,” Shreiber said.

Meanwhile, sales of Pillsbury churro bites, which were introduced in Q2 ended June 30, were “less than stellar,” Shreiber said.  “It has not been terrible and we are not giving up on it yet,” Shreiber said. “Our investment {in the Pillsbury product} was very, very small and it made a lot of sense.” Overall, J&J’s Q3 net income slipped 5.2% to $25.3 million as revenue increased 6.2% to $295.4 million. Retail sales rose 0.5% $38.1 million.

Contact: J&J Snack Foods, Gerald Shreiber, CEO, 856-532-6603, gshreiber@jjsnack.com

CafePress Revamping Website

CafePress is revamping its website in cleaning up “a build-up of non-active products” with a goal of having the work complete by fall, CEO Fred Durham told investors. As part of the effort, CafePress.com has a redesigned an entertainment section featuring movie, TV, comics and children’s official and fan-designed products including mugs, t-shirts and hoodies. It also has fraternity and sorority gear as well as licensed apparel for the four branches of the armed forces.

CafePress’ net loss for Q2 ended June 30 narrowed to $3.2 million from $23 million a year earlier despite a 12% decline in revenue to $17.9 million. The revenue from the CafePress.com web site dropped to $13.7 million as the average order size fell 7% to $37.09. CafePress’ retail business, which includes a merchandising deal with Amazon and a new third-party seller agreement with Walmart.com, posted a 22% gain in revenue to $4.1 million. With the new Walmart pact, CafePress has “more control over the merchandising assortment and product pricing, opening a new channel for growth at more attractive margins,” Durham said.

Contact: CafePress, Fred Durham, CEO, 502-995-2258

Exploding Kittens Lands Licensing Deals, Target Distribution

Exploding Kittens has landed new licensing deals and expanded distribution to Target, marking its first major move outside of sales through Amazon. Target is selling the Russian Roulette-style card game through its stores and online, along with licensee Andrews McMeel’s calendar. The game, in which players continue drawing cards until they get an exploding kitten and are knocked out, was launched in 2015 after Exploding Kittens raised $8.7 million through a Kickstarter campaign that drew more than 200,000 backers. Just Toys is selling novelty products through Target, while apparel designer Mighty Fine is expected to test t-shirts through the chain. Mighty Fine is selling a t-shirt, plush scarf and plush toys through its welovefine.com web site. Exploding Kittens has more than 100 characters, but has been focusing on Taco Cat, Rainbow Ralphing Cat and Hairy Potato Cat, company executives have said (Inside Licensing Aug. 2, 2016).

“This has been a slow build because we felt it was important the game got more broadly exposed outside of Amazon” before expanding into licensing,” says Russel Binder of Striker Entertainment, which represents Exploding Kittens for licensing.

Contacts: Exploding Kittens, B Cavello, Product Development Dir., b@explodingkittens.com Striker Entertainment, Russell Binder, Partner, 818-225-9355, Russell@strikerent.com Mighty Fine, Kara Holmes, Marketing Mgr., promotions@welovefine.com. Just Toys, Alan Nowers, General Mgr., 949-742-0044, alan.nowers@justtoysint.com Andrews McMeel, Melissa Merciez, Licensing Coordinator, 816-581-7392, MMerciez@amuniversal.com

Cosmopolitan Getting Runway Treatment

Cosmopolitan is getting the runway treatment as part of a new “Fashion Experience” display at Madame Tussauds Museum in Sydney, Australia. As part of the exhibition, users get a digital make-over with Napoleon Perdis cosmetics and Wella hair care products, try on apparel from Myer Department Stores and then strike a pose for a Cosmopolitan magazine cover shoot. The licensing agreement with Madame Tussauds parent Merlin Entertainment is part of Hearst Corp.’s efforts to expand its experiential-licensing business, which also includes a Harper Bazaar Café in Dubai and planned Esquire whiskey and cigar bars in India.

Contact: Hearst Global Licensing and Brand Development, Steve Ross, Chief Global Licensing Officer, 212-649-3259, sross@hearst.com