For a retail toy seller like Geppetto\u2019s to thrive for decades is an accomplishment, said Adrienne Appell, the executive vice president for marketing and communications with The Toy Association, a national trade group. Appell has visited several Geppetto\u2019s stores and called the chain wonderful.<\/p>\n
\u201cI think it\u2019s an amazing achievement,\u201d Appell said. \u201cThere\u2019s a lot of trends that drive toy sales and drive the toy industry. So to have that staying power as a retailer for 50-plus years, you have to be in the know and create an environment where families want to come and want to explore, and have the trendy products, but also create the unique experience that really only neighborhood toy stores can do.<\/p>\n
\u201cTheir staying power really speaks to them being innovative, them being creative and them really being on trend,\u201d Appell said.<\/p>\n
Rules of the game<\/p>\n
Miller, on a recent Thursday morning at the store in Del Mar Highlands Town Center, before any customer set foot inside, said people often ask him what the secret sauce is for running as successful a business as his, for as long as he has.<\/p>\n
His answer: the sauce has a few ingredients. It\u2019s not just one thing. Instead of a recipe, Miller outlined what you could call the rules of the game for running a successful brick-and-mortar toy business. Or business, period.<\/p>\n
\u201cNo. 1 is people,\u201d Miller said. The people he hires are friendly, hardworking, eager to help customers and passionate about toys. To find such gems, Miller trusts his first impression. \u201cI think job experience matters less,\u201d he said. \u201cIt\u2019s what kind of person are they? Are they going to be friendly? Are they going to greet people with a smile? And are they going to work hard? Because you have to work hard.\u201d<\/p>\n
Soon after, two employees and his younger son, Jared, 23, entered, and all sported smiles and offered a hand to shake. One woman has been with the company 26 years; the other is a newer hire. Miller named two nonstarters for team members \u2014 showing up to work on time and looking presentable \u2014 which goes without saying. But, he added, he\u2019ll say them.<\/p>\n
The next rule is carefully curating what you offer.<\/p>\n
\u201cI want to carry products that I can stand behind, that I can be proud of selling, that are good quality,\u201d he said.<\/p>\n
That much is clear from setting foot in a Geppetto\u2019s store, where shoppers might spot a common thread running through the offerings. All those toys, from Legos to science and art supplies to board games to high-octane sporty gear, all tend to feed the imagination, build skills and build connection between people.<\/p>\n
Miller picks out every toy. He touches them at trade shows. Inspects stuffed animals for snuggliness. Smells them. (As he described this, he picked up a Jellycat teddy bear and gave it a sniff.) \u201cI mean, you want to know those things, right?\u201d<\/p>\n
A good toy, Miller said, must be educational, durable, and challenging but not frustrating. It should grow with the child. It needs to have a fun factor.<\/p>\n
When he evaluates pitches, he trusts a sixth sense sharpened over decades of experience.<\/p>\n
\u201cIt\u2019s my gut,\u201d he said. \u201cI\u2019ve done it for so long.\u201d<\/p>\n
One toy he stocks has a personal memory for Miller. \u201cI had a little Evel Knievel motorcycle that my sisters gave me when I was little, and we still sell a version of it.\u201d The main buyers are nostalgic parents grabbing one for the next generation.<\/p>\n
With NeeDohs, he knew they\u2019d do well when he noticed the clever designs, the price point kids can afford with their own spending money and how satisfying they are to play with. He was right: they have outsold Beanie Babies, Cabbage Patch Kids and Furbies, he said. The rise of tactile, sensory toys and fidgets has surprised him, he added. A large shelf at the front is dedicated to such items, and that was not the case five years ago.<\/p>\n
About half of what the stores carry is trendy and half are classics, he added. Fads might have a shelf life of a few years. Some are an intersection \u2014 a twist on a Rubik\u2019s cube.<\/p>\n
Geppetto\u2019s stores aren\u2019t big. At around 2,000 square feet, the Del Mar Heights store is on the bigger side. The smallest, in Coronado, is less than 1,000 square feet.<\/p>\n
That squeeze is by design. \u201cI only have so much square footage.\u201d So he must apply focus and discernment. That\u2019s different from Amazon or eBay, which sell millions of toys and games that vary wildly in sourcing, quality and subject.<\/p>\n
A physical venue also offers something \u201cthat you can\u2019t get online. You know, the warm, fuzzy feeling of coming into the store,\u201d he said.<\/p>\n
Appell echoed this, saying the brick-and-mortar model is especially suited to toy sales, because toys are by nature interactive. \u201cYou can actually touch the products, see how they work. The displays are set up that way. Whereas online, you may not understand what it does or how magical that toy can be,\u201d she said.<\/p>\n
Geppetto\u2019s offers free gift wrapping. Those signature papers \u2014 including comic book pop art \u2014 his favorite, dinosaurs \u2014 are an instant tell at parties. They work double duty, as both customer service and word-of-mouth marketing.<\/p>\n
Speaking of marketing, Miller\u2019s third rule of the game is \u201clocation, location, location.\u201d Geppetto\u2019s are on cute main streets, bustling malls, places with great foot traffic. All the stores are leased, with long leases, he added.<\/p>\n
\u201cI wish I owned the real estate. I wasn\u2019t as smart as McDonald\u2019s,\u201d Miller joked.<\/p>\n
He closed one location at Otay Ranch Town Center several years ago because it was not working. The decision was difficult and costly. Lesson learned: growth comes with risks.<\/p>\n
Another big lesson came during the COVID pandemic, which was the greatest challenge the business faced in its 50 years, Miller said. The lasting takeaway: be flexible.<\/p>\n
Rule No. 4: be a good citizen<\/p>\n
As Geppetto\u2019s, founded in 1976, turns 50 this year, it is gearing up for a double celebration. On Sept. 19, it will host parties at all nine locations from 9 a.m. to 3 p.m., with goodie bags, discounts, activities, treats and entertainment. The company is also pledging a donation of $50,000 to Rady Children\u2019s Hospital San Diego. The method is unusual: Geppetto\u2019s will sell a custom 50th Anniversary NeeDoh, which it created with the viral toy maker, Schylling. Proceeds will go to the hospital.<\/p>\n
\u201cRady Children\u2019s is honored to celebrate this incredible milestone with Geppetto\u2019s and grateful that their success is being shared in a way that directly benefits the patients and families who rely on Rady Children\u2019s every day,\u201d Alex Loker, vice president of Philanthropy for Rady Children\u2019s Hospital Foundation, said in a news release.<\/p>\n
He does this year in and year out, not just for milestones.<\/p>\n
\u201cI don\u2019t delegate this to someone else \u2026 I pick out toy packages that we give as donations to different organizations,\u201d Miller said. Those become auction and raffle prizes at schools and nonprofits.<\/p>\n
Before the interview with the U-T, he had been stacking items for an elementary school readathon prize. He also donates each year to Toys For Tots during the holidays, and contributes funds and toys to Rady Children\u2019s.<\/p>\n
He also recently got something back. A manufacturer sent him a $500 tariff refund check, \u201cout of the blue,\u201d a few weeks ago. Tariffs still touch nearly every item he sells, Miller said.<\/p>\n
\u201cMost manufacturers have absorbed them in their costs and are passing it on. So they raise prices, but they\u2019re not calling it a tariff surcharge,\u201d he said. \u201cIt doesn\u2019t matter if it\u2019s from China or it\u2019s from Europe. So to some degree, everything is affected. And there are some things made in the United States that are not, but I couldn\u2019t fill our store with just things made in the USA. There aren\u2019t enough toys made here.\u201d<\/p>\n
Customers aren\u2019t balking at increase prices, he said.<\/p>\n
![\"San](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/09\/SUT-L-GEPPETTOS-001.jpg\")
Tactile and sensory toys are popular items at Geppetto\u2019s toy stores. (Kristian Carreon \/ The San Diego Union-Tribune)<\/p>\n
\u201cBusiness has been very strong. I think that people are used to paying higher prices\u201d across the board, he said. They might spend $40 instead of $50, he added, but they\u2019re not cutting toys and games. \u201cThey still spend for their kids.\u201d<\/p>\n
That mirrors a national trend. Market data company Circana<\/a> wrote in August that \u201cthe U.S. toy industry delivered its strongest first-half performance in six years, with dollar sales increasing\u00a017% from January through June 2026, compared to the same period last year.\u201d Shoppers were drawn to \u201ccollectibles, sensory toys, licensed products, and hobby-oriented play, underscoring the broad appeal of toys despite ongoing affordability pressures. These trends are helping expand toy engagement across a much wider consumer base than the industry has historically served.\u201d<\/p>\n While he declined to share the company\u2019s annual revenue, Miller said Geppetto\u2019s is consistently profitable. \u201cExcept for the COVID year, every other year our business has increased from year to year. And this year, 2026, we\u2019re having the largest increase \u2026 that we\u2019ve ever had.\u201d<\/p>\n That is stronger than typical performance for the toy industry, whose sales have nearly, but not fully, caught up to pre-pandemic levels. Monthly sales were around $3.3 billion last December, after increasingly steadily from a holiday low of around $1.19 billion in 2018. Sales reached $3.4 billion in December 2015, according to the Federal Reserve Bank of St. Louis.<\/p>\n Goldilocks approach<\/p>\n \u201cPeople have asked me, Why haven\u2019t you grown?\u201d Miller said.<\/p>\n In fact, Geppetto\u2019s has grown. The first store, opened by his parents, was in Old Town. Miller took over the Hotel del Coronado store in 1992 and bought the Old Town store in 1993. Now, with nine shops, Geppetto\u2019s is the country\u2019s largest regional independent toy seller. That is, by number of stores.<\/p>\n But there\u2019s growth, and then there\u2019s growth.<\/p>\n Miller\u2019s approach embraces moderation.<\/p>\n \u201cWe get lots of offers from developers, from malls. \u2018I need a toy store here in St. Louis. I need a store in Florida.\u2019\u201d Companies have reached out to partner, buy a stake. And he gets pitches to open stores with new concepts. He\u2019s great at selling toys, so why not kids\u2019 clothing? The answer has consistently been, pass.<\/p>\n \u201cI really appreciate the offer, but I think that would just be a distraction,\u201d he said.<\/p>\n Why not expand? A Geppetto\u2019s in every airport, in Manhattan, on the moon?<\/p>\n \u201cI have to stay focused on what I do well,\u201d Miller said. \u201cAnd not that I couldn\u2019t do it. But I know what I do well, and I want to keep fueling that fire.\u201d<\/p>\n He actually did consider a location in Beverly Hills. \u201cI thought, this is perfect for us. And then I drove up there in the traffic, and I drove home in the traffic, and we loved the location, and I couldn\u2019t figure out why I would want to do it at this stage.\u201d<\/p>\n He and his wife, Danielle, the company\u2019s co-owner, decided against it. He also sought input from employees.<\/p>\n \u201cWe\u2019re happy with what we have,\u201d he concluded. \u201cNow, I won\u2019t say no to other opportunities if something pops up in San Diego. But I\u2019m not really interested in going outside of San Diego at this stage.\u201d<\/p>\n Turning down offers and staying focused comes with an opportunity cost, however. Does he ever worry he made the wrong call?<\/p>\n \u201cThat would be a feather in my cap, this fancy store in Beverly Hills,\u201d he conceded. But Miller let go of the feather with no regrets. \u201cMaybe because I turned 60 this year,\u201d Miller said. Asked what\u2019s next, he said he has no plans to retire soon.<\/p>\n \u201c\u2018Cause I love it.\u201d<\/p>\n Competing in the digital age<\/p>\n He\u2019s also not worried about competition the way he used to.<\/p>\n The $45.6 billion toy industry, according to 2025 figures from Circana cited by The Toy Association, has been affected, like others, by consolidation.<\/p>\n When Geppetto\u2019s first opened, the nearest threats came from stores down the street. Now there\u2019s Amazon, big-box stores, online marketplaces like eBay. A formidable competitor, Toys R Us, filed for bankruptcy in 2017 and closed stores in 2018. That was after it bought another legendary toy retailer, FAO Schwarz, which now sells its products in a Manhattan store \u2014 and at Target.<\/p>\n Now there\u2019s also Snapchat. TikTok challenges.<\/p>\n Miller has noticed that in the past decade, the upper age of children playing with physical toys has dropped from 12 or 13 to younger. The industry term for this is age compression. But there\u2019s room for both toys and screens in a balanced approach, he said.<\/p>\n He has noticed a growing backlash among parents against screens and digital play. Adults, he added, are showing a renewed interest in board games and stuffed animals. UC San Diego students are big shoppers at the Westfield UTC location.<\/p>\n Instead of worrying about competition and downsides, Miller\u2019s full energy goes into running the business.<\/p>\n \u201cI can only do what we do and do it well, and stay in our lane, and keep going forward with that. There\u2019s too many distractions out there, and I want to stay focused on what we do.\u201d<\/p>\n That strategy matches what Appell described as a path to success for toy retailers.<\/p>\n \u201cIf you\u2019re able to stay ahead of the curve, you have to really be price conscious, trend conscious.\u201d A good toy store develops a sense of community so that \u201cfamilies are going to want to come. They\u2019re going to trust you, and they\u2019re going to know they\u2019re going to have a great experience there.\u201d<\/p>\n The store\u2019s name, Geppetto\u2019s, says a lot about its values. It\u2019s the story about a parent\u2019s love, about telling the truth, but also about cherishing and honoring humanity. What better way to do that than through play?<\/p>\n \u201cI think of the craftsmanship, but I also think of longevity, and that\u2019s what we\u2019ve done,\u201d Miller said. \u201cWhen I think of being a successful business over five decades, the name Geppetto\u2019s says it. It gives you that sense of history and staying power.\u201d<\/p>\n Miller\u2019s top picks <\/p>\n This is what Miller recommends again and again when people come in asking for ideas.<\/p>\n For littles, a train set. Not battery-powered. The kind they push around with their tiny hands.<\/p>\n Next, a musical instrument. For example, this xylophone and pound and tap bench<\/a> combination.<\/p>\n For all ages he likes art supplies. It\u2019s not just about how the child\u2019s drawing or artwork turns out, but how it feels during the making, he said. He likes the brand Ooly<\/a>, which is based in Carlsbad. He also sells a loom for making bracelets, which he tested against other looms and decided it\u2019s the easiest to use.<\/p>\n Last, every kid should have a few classic board games. He pointed to Monopoly because it teaches kids about using money. (His personal favorite is Qwirkle, \u201can elevated Dominoes,\u201d he said.)<\/p>\n \t\t\t![\"San](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/09\/SUT-L-GEPPETTOS-012.jpg\")
Small toys called Wigglitz at Geppetto\u2019s. (Kristian Carreon \/ The San Diego Union-Tribune)<\/p>\n