Build-A-Bear Workshop has many assets. The company holds around $25 million in cash, is debt-free, and has more than 660 stores. 2025 generated the highest revenue in Build-A-Bear history. What’s often overlooked is their intangible assets. Build-A-Bear gathered a loyal fanbase, consisting of both kids and adults. The company has curated a brand name with respect and recognition. They provide a unique experience to customers, not found anywhere else.
It doesn’t matter. It doesn’t matter what a company has, only what they’re planning to do with it. Sadly, Build-A-Bear is currently leaning towards the wrong path.
Build-A-Bear’s intangible assets carry more weight than their monetary ones. The company needs to deliver a quality interactive experience to please customers. Happy customers are willing to pay a high price, and they can sell the story better than any commercial.
The Wrong Path:
Build-A-Bear’s new initiative focuses on expanding to more locations through partner stores. These partner stores are run by an external company that attempts to condense the typical 1500-3000 sq ft store into as small as a 100 sq ft mini-store. Build-A-Bear sells all materials the partner store would need at wholesale prices. This is a virtually no-risk plan. It’s quick money.
However, no quick money is free.
I visited a Build-A-Bear in a Walmart. The employees didn’t acknowledge me at first, and the store felt cold. In the 30 minutes I was there, not a single other customer came in. By cutting down a store to fractions of its original size, the never-ending options were diminished, and personalization was forgone. Plushes were cramped into a tiny display, and there was a limited selection of clothing and accessories. The interactivity is streamlined, trimmed to fit into smaller spaces.
In contrast, at a corporate-owned location I visited, the vibe was completely different. The number of plushes to choose from doubled, while the clothes to choose from increased tenfold. The store was packed, and the employees were friendly. When it was somebody’s birthday, all the employees sang a song together.
The environment is what makes Build-A-Bear magical. It cannot be sacrificed. The appeal of a huge, brightly colored store with everything imaginable, filled to the brim with people, is what brings Build-A-Bear Workshops to life.
Furthermore, by utilizing partner stores, Build-A-Bear relinquishes control over the experience. The partner company manages the store and hires its employees. The store’s quality is no longer in Build-A-Bear’s hands.
And when a customer feels unsatisfied? They don’t blame Walmart, or Great Wolf Lodge, or SeaWorld. A bad experience at Build-A-Bear affects Build-A-Bear’s reputation.
Additionally, Build-A-Bear has reported declining sales in e-commerce year after year since COVID. There’s a very simple reason. The Build-A-Bear website is boring. There is a wide selection, but without the stuffing process or heart ceremony, the plushes are just overpriced toys. Thousands of cheaper options are available on Amazon. Online retail just isn’t able to capture the appeal of Build-A-Bear.
The Right Path:
Build-A-Bear Workshop needs to refocus on what made them special.
Building bigger stores. Build-A-Bear has already started construction on a multiple-story flagship store in Orlando. With more space, more can be done. More plushes. More clothes. Implementing special events, scavenger hunts, and a more hands-on DIY feel. 80% of Build-A-Bear visits are planned. Instead of having Build-A-Bears everywhere, increase the thresholds and ranges for each store. The company should aim to increase the average duration of a visit
As it stands, partner stores are a liability. However, with the right strategy, Build-A-Bear can make them work. Currently, Build-A-Bear chooses to go into tourist locations with high foot traffic. Since the location is expensive, they’ve worked to compress stores into smaller footprints. Tourist locations are great places to find families willing to spend money. It’s worth spending more money to secure a larger store. It’s what makes a store truly memorable. In addition, Build-A-Bear should steer away from wholesale. To fully control the experience, Build-A-Bear must be in charge.
As stated previously, Build-A-Bear’s website is fundamentally flawed. It is impossible to replicate such a personal experience online. Build-A-Bear can only try to lessen the gap. When stuffing the bear, let customers do it themselves by holding a button. Create a virtual heart ceremony. When picking clothes, implement a virtual changing room. These changes are not hard to implement, but they will go a long way.
Conclusion:
Stuffed animals are everywhere, but special memories are treasures. Build-A-Bear must not risk its most valuable assets for short-term cash. The company should turn back and refocus on pushing whimsical uniqueness to its limit.
8va 