ToysRUs partners with Capillary Technologies to increase store conversion with AI powered solutions

The iconic toy chain is undergoing a digital transformation in the KSA backed by Capillary Technologies as a strategic partner

Capillary Technologies, a leader in omnichannel engagement solutions along with its partner Naizak AlElm have become a key technology enabler for ToysRUs in Saudi Arabia by providing the popular chain of toy stores with its AI based Instore solution. ToysRUs will benefit from Capillary’s retail marketing solution to accurately identify in-store walk- in’s and derive rich insights about customer behaviour and buying patterns to help plan store operations efficiently. 

According to research from Euromonitor International, Saudi Arabia’s retail market is expected to grow at 12.3% to be worth US$119 billion by 2023. Having recently established its regional entity ‘Capillary Arabia’ in the Kingdom, Saudi Arabia is the fastest-growing market for Capillary in the region. With this latest partnership with ToysRUs, Capillary aims to further consolidate its presence in the country.

Offline retail in Saudi Arabia continues to contribute about 95% to the total spend. Consumers still prefer to visit brick-and-mortar stores to experience and  feel the product before a purchase. Keeping customers at the center of attention, ToysRUs wanted to build an offline clickstream of data, similar to what ecommerce does, to support the company’s mission to provide an exceptional retail experience to customers.

ToysRUs deployed Capillary’s VisitorMetrix which not only enables it to analyze historical store traffic patterns to determine staffing requirements through power hours, but also gives immediate responsive data to changes, including studying the impact of promotional campaigns. ToysRUs uses this information to strategize their operations and marketing campaigns to look deeper at their performance and pull the right levers for improved productivity.

“While our ecommerce business is growing, we did not want to lose focus on the offline stores. Combining the instore consumer behaviour with the transactional data will give us a complete 360 degree view of our customers and will help us personalise our offerings and services,” said Mr. Mansour Al-Akeel, Managing Director and CEO at ToysRUs.

Capillary’s President and General Manager for META, Nitin Kaushal said, “Saudi Arabia is one of our key markets in the region and we are pleased to partner with ToysRUs and be involved in their digital journey. We will soon be launching VisitorSense to help retailers capture more in-store data. It will provide brands with demographics and fashion profiles of store visitors to better understand their buying habits, patterns and preferences. We look forward to establishing a long-term partnership with ToysRUs and help elevate their customer experience.”

Capillary has also partnered with Naizak in Jeddah to leverage its rich and localised expertise in the market to design localised loyalty solutions for homegrown brands.


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