Retail Profile - Daniel of Windsor

Retail royalty Daniel of Windsor

Department store Daniel of Windsor has been a town icon for well over 100 years, drawing in tourists from around the world as well as loyal customers, some of whom have been shopping at the store for decades. As its impressive toy department goes from strength to strength, Rachael Simpson-Jones paid a visit to sit down with Warren du Preez, the retailer’s head toy buyer, to find out the secrets of its success.

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It’s a cold but sunny day in mid-March when I visit Daniel of Windsor, which lies on Peascod Street, in the shadow of the imposing yet beautiful Windsor Castle. Despite the fact it’s a Friday, the department store is busy, and the café where we sit for coffee and cake before getting down to business is positively heaving. According to Warren, the 124-year-old family business – which is still owned and operated by the Daniels – is beloved by all who visit: grandparents and retirees from the local area, who make up the majority of the clientele from Monday-Friday; families with kids (the weekend crew); and tourists taking in the sights and sounds of this historic town.

Daniel of Windsor has been the retailer’s flagship department store location since 2017, taking over from Ealing, and since the 1940s has maintained a toy department of at least 10,000 square feet, all year round. As you might expect, all the major suppliers are represented in brands suitable for buyers of all ages and stages: Lego, Playmobil, Hasbro, Mattel, Spin Master, Ravensburger, Funko, Ty, Moose, MGA, and many more (120+ suppliers, to be more accurate).

Warren joined the team in 2013 and since then has focused on providing the very best toy shopping experience possible. “We invest heavily in staff and training,” he explains as we look out over the floor from his office, to which we’ve retreated to ensure my recorder can pick up our conversation. “There are 13 members in the toy team, covering everything from order picking and packing upstairs to customer-facing interactions within the department. All of them know the features of the toys, the must-haves of the moment and so on, and that takes time and money. But it means we offer unrivalled customer service to match the fantastic brands we range here.”

While he’s opened a number of new accounts while taking on the role, Warren ‘inherited’ the majority of the supplier relationships the department store enjoys owing to the fact many have been in place for decades. The size of the department means there’s plenty of space for a broad range of toys and games, but what sets the retailer apart as a partner is its ability to bring a brand to life. Warren’s enthusiasm for doing so is reflected in what we see outside his office window. The space is bright and brimming with theatre. Kids pose in Mattel’s Thomas the Tank Engine and Spin Master’s Paw Patrol Lookout Tower, take a ride in the Playmobil Fire Truck, stand for pictures next to the life-size Lego Royal Guard, and create their very own railway layouts on the Brio table. There are photo opportunities everywhere you look, increasing dwell time and consumer engagement, and the flexible footprint of the department means there’s always opportunities for those suppliers keen to do so to create something special to highlight their products.

“Owing to our core demographic, we lean heavily intro traditional play patterns,” says Warren, when asked about the most popular categories. “Arts & Crafts is very strong, as is Science & Discovery, plus Construction and Games & Puzzles. At the other end of the spectrum, we’ve got content-led licensed brands such as Bluey and Paw Patrol, and a growing number of ranges aimed at Kidults, including manga and anime. The latter goes down really well with European schoolkids visiting from France and Spain, but we’re careful to do our due diligence and ensure that what we bring in within the Kidult sector aligns with our family-friendly ethos. We have a reputation to maintain, after all.”

Those who follow Warren on LinkedIn will know that he likes to keep his finger on the pulse by visiting plenty of trade shows. When asked his thoughts regarding this year’s major toy launches, and whether or not there’s enough in the way of newness, he tells me this topic that has cropped up far more this year than it has in previous years.

“When you’re on the trade show circuit, it’s easy to get caught up in the excitement surrounding launches from just two or three big players, but when you dig beneath the surface you discover there’s much more worth getting into,” he explains. “What Zuru is doing on Mini Brands and Pets Alive is phenomenal, and at such strong price points too, while Funko’s Bittyverse – especially when viewed through the Kidult lens – is clearly capable of rivalling some of the other product that’s out there for adult collectors. Maybe some of what’s coming through for this year isn’t brand-new, sure, but there are some line and brand extensions out there with huge potential, particularly from the small- and medium-sized, more reactive companies.”

Here, Warren asks a very interesting question: far from being the fault of suppliers, are buyers to blame for the perceived lack of innovation within the Toy & Games category? After all, why would a supplier spend millions in product development to bring to market something never-seen-before (especially when the economic climate, particularly in the US, is anything but peachy) if buyers are going to balk at the thought of getting behind it? Over the past few years, we’ve certainly seen a blanket of caution descend upon both sides of the table. Perhaps we’re establishing a vicious circle, a chicken and egg situation in which what’s needed are some big gambles by suppliers - and a willingness to go along for the ride from retailers. After all, you can’t make an omelette without breaking a few eggs. That said, there are those out there who Warren feels are pushing the boat out. Moose, he says, is “tearing up the script” while Zuru seems to “always be on the move”.

Speaking of eggs, Easter is round the corner. A big moment in the calendar for most retailers, Daniel of Windsor will be laying on its customary raft of events and activities for consumers. Ty is on board for a Beanie Bouncers in-store activation following a very positive early reaction (this will be broadly similar to how the range was presented at the NEC, for those who saw it at the show), and hopes are high there can be some sort of activity out on the high street too – though Warren notes, with a laugh, that the proximity of the store’s royal neighbours can sometimes make the logistics “a bit tricky”. Sylvanian Families is hosting an Easter Bunny meet & greet, meanwhile, and Brainstorm is partnering with the retailer for a Eugy crafting demo day. There will also be a Numberblocks treasure hunt around the store.

In addition to Easter (and Christmas, of course), Daniel of Windsor has also witnessed the growth of occasions such as Valentine’s Day, Mother’s Day, Father’s Day and Halloween, the latter of which was especially strong in 2024 as grocers continue to move away from celebrating it. Warren tells me consumers are still spending on gifts “with conviction”, the likes of Lego’s Botanicals or Speed Champion ranges, for example. He’s also noticed that parents or care givers looking for a gift to give their other half will often bring their kids with them, almost in a personal shopper capacity. The child picks the present they deem most suitable for the recipient, based purely on how much they will love it, and the adult foots the bill (whatever that might be). It is, as he puts it, an interesting dynamic.

One of Daniel of Windsor’s big strengths is that all its staff are fully trained in immersive consumer engagement, meaning there’s usually something going on every weekend. This could range from a simple board game demo to a fully branded Lego make & play event. Whatever and however the team chooses to engage with and entertain shoppers, the aim remains the same: to help create fun memories via a soft-sell approach that keeps people coming back time and again. Warren says: “If ever a customer asks for a product we don’t have, we’ll point them towards the nearest stockist. Shoppers remember helpful stores and are more likely to return to them. It’s about providing the information consumers want, while still leaving the ultimate choice about whether to buy a toy in their hands.”

Of all types of retailers, the department store category has arguably been hardest hit by shifting consumer habits and economic challenges over the past decade. BHS went bust in 2016, followed by Debenhams high street arm in 2021, while House of Fraser continues to shutter stores across the country, and Fenwick recently appointed advisors to look at its strategy after posting another loss. One of the most oft cited reasons for their decline has been a lack of consumer loyalty, something Daniel of Windsor has not experienced. Thinking specifically about toys, Warren points out it’s common for department stores to grow their toy footprint for Q4 and shrink it for the rest of the year, something he feels does retailers no favours.

“Sucking all the life out of toys like this doesn’t help consumers feel excited about them as a proposition,” he says. “This category should be vibrant and colourful, and your toy department should invite kids to play and get hands-on all year-round, not just as Christmas. If it’s not, and it doesn’t, your consumers are getting mixed signals, and it turns them off of the message.”

As we know, 2024 was a challenging year for the wider toy and toy retail industry. However, for Daniel of Windsor, it was another year of growth. The department store ended the period +10% up, and is currently +13% up YTD, meaning it’s outperforming the market. Some of this, Warren notes, is down to its affluent Windsor catchment - but more is down to he and his team’s proactive, reactive and hardworking approach to buying. I’m pleased to say their success has been recognised over the years. The office we’re sitting in, though small, is dotted with gold frames holding Toy Industry of the Year Awards; Toy Department of the Year in 2018, 2019 and 2024, a Judge’s Special Recognition Award for 2023. Back out on the shop floor, once Warren and I have parted company for the day, it’s easy to see why. As I stroll around for a last look, I can hear two mothers singing the toy department’s praises as their exuberant kids totter between themed areas. “It’s amazing in here, isn’t it?” asks one, as the other navigates past with her buggy. “It is!” she replies. “You can easily spend hours in here.”

Which reminds me, my parking ticket is about to expire. Because you really can spend hours in Daniel of Windsor – and I just have.