DMA HK: Flora Tsui on how Toys “R” Us measures real ROI in digital marketing

In an era marked by rapid disruption and shifting customer expectations, businesses can no longer afford to treat digital as a side initiative — it must be at the core of strategy.  

For retail brands such as Toys “R” Us, digital is not an add-on – it's the foundation of its turnaround, said Flora Tsui, vice president, marketing and digital strategy, Toys “R” Us Asia, in conversation with MARKETING-INTERACTIVE. “Retail today is a margin-sensitive business where customer attention shifts fast. Without digital, we risk becoming invisible. For us, the mandate is both survival and relevance.” 

Digital has enabled the brand to pivot from a traditional toy retailer into a lifestyle brand built on connection, she said. “We use data-driven CRM, performance media, and AI-powered content creation to anticipate what families want, not just react to it. Every campaign is tied back to measurable business levers — revenue, average basket size, repeat visits, member contribution & frequency. This transparency creates bottom-line accountability and builds confidence across our markets.” 

“Ultimately, digital is our way of reclaiming the throne in toy retail. Our brand equity is strong, but equity without engagement fades,” she added. “By embedding digital into every touchpoint — from personalised coupons to eCommerce journeys to immersive social storytelling — we ensure Toys “R” Us stays central in family life, relevant across generations, and financially sustainable.”  

Bridging online and offline 

While digital transformation remains crucial, in-store shopping continues to play a significant role in consumers' lives and is still the preferred channel for 44% of shoppers, according to a newly released 2025 retail report by Adyen. 

Tsui said the magic of Toys “R” Us has always been the in-store experience — children running through aisles, discovering play. “The challenge is that physical stores alone can become a liability if they don’t evolve. Digital is how we reframe them as assets.” Currently, Toys “R” Us operates around 460 stores across Asia, including locations in Mainland China, Japan, Malaysia, Hong Kong, Singapore, Taiwan, Thailand and Brunei. 

At the heart of the brand’s omnichannel approach is its membership ecosystem, added Tsui. “Through partnerships with play experience and lifestyle merchants, we create ‘money-can’t-buy’ activities — exclusive workshops, themed play sessions, or lifestyle crossovers only for Toys “R” Us members.” 

“Digital channels allow us to recruit, segment, and invite the right families, while the physical event becomes the anchor of engagement. This not only drives intentional traffic to our stores but also strengthens emotional bonding with the brand,” she added.   

Another advantage of this approach is the rich data and insights it generates, she said. “By tracking participation and redemption, we learn what our consumers value — whether it’s creative play, STEM, or family lifestyle experiences. That feedback loops back into how we design both merchandising and digital content.” 

“In this way, stores evolve from being pure cost centres into experiential hubs that deepen brand loyalty, fuel repeat visits, and make omnichannel more than just a sales model — it becomes a community touchpoint.” 

Evaluating ROI of digital investments 

With tighter marketing budgets, pressure on ROI is higher than ever. Tsui emphasised that in today’s climate, digital investments must deliver more than vanity metrics. “It’s no longer about impressions or clicks — the true measure is business impact.”  

Toys “R” Us’ ROI evaluation framework has shifted in three ways, one is bottom-line linkage, ensuring every campaign is mapped to sales, margin contribution, or member frequency uplift, she said. 

Rapid testing is also key, she added. “We operationalise A/B and multivariate testing in compressed cycles, so under pressure we can decide fast which creative, channel, or offer moves the needle. AI definitely helps a lot on this front.” 

Finally, cross-market scalability is critical. “As a regional business, we assess whether a successful pilot in Hong Kong can scale to six other markets with minimal incremental cost. ROI is not just campaign-level but ecosystem-wide.” 

“By holding digital accountable to commercial KPIs while preserving agility, we ensure every dollar spent on digital contributes to both short-term recovery and long-term brand equity," she concluded.

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