Podcast Summary: Post Reports

Episode: Why Build-a-Bear Workshop is outpacing big tech

Date: October 28, 2025
Host: Elahe Izadi
Guest: Jackie Peyser (Retail Reporter, The Washington Post)

Overview

This episode examines the surprising financial success of Build-a-Bear Workshop—a retailer long associated with mall culture—whose stock performance has recently outpaced even the giants of big tech. Host Elahe Izadi talks with retail reporter Jackie Peyser about what’s fueling Build-a-Bear’s growth, how the company has adapted despite the decline in malls, and the unexpected role of adult consumers in its success.

Key Discussion Points & Insights

1. Build-a-Bear’s Exceptional Financial Performance

• Stock Growth:

  • Over the past five years, Build-a-Bear’s stock is up over 1200% ([01:33]).

    “If you just look at its stock price for the last five years, it’s up more than 1200%.” – Jackie Peyser [01:33]

  • Growth far exceeds big tech companies like Apple or Microsoft in percentage increase, even though their share price is much higher ([01:49]).

• Historical Context:

  • Company’s performance had never come close to this; their stock hit a low of $1 during the pandemic but has seen record revenue growth five years running ([02:20]).

    “Their stock price went as low as $1... But no, they’ve never seen success like this.” – Jackie Peyser [02:20]

2. The Unique In-Store Experience

• Experience-driven Retail:

  • Build-a-Bear’s success has a lot to do with its hands-on, customizable store experience ([03:07]).

    “Their in-store experience is really singular. They have a really unique way of bringing in customers at a really young age...” – Jackie Peyser [03:07]

  • Customers choose from a variety of “furry friends,” pick outfits, participate in stuffing the animal, and partake in a symbolic heart ceremony ([03:24–04:20]).
    • Personalization options extend to sounds, scents, and themed costumes.

• Price Range:

  • Basic bears start around $36–$38, with premium and limited editions reaching hundreds of dollars ([04:57]).

3. Adapting to the Changing Retail Environment

• Malls in Decline, Build-a-Bear Rising:

  • Unlike other “legacy mall brands” struggling as shopping habits move online, Build-a-Bear continues to resonate ([05:32–06:23]).

    “Mall brands specifically are not doing well... But they [Build-a-Bear] bring in these kids at a really young age... so there’s this nostalgia aspect to it.” – Jackie Peyser [06:23]

• Operational Flexibility:

  • They assessed and closed unprofitable locations and shifted to in-store fulfillment for online orders, making use of store staff during slow hours ([07:16]).

    “They have staff that’s already there... they can stuff the bear and put the package together to then send to you.” – Jackie Peyser [07:46]

• Navigating Tariffs and Supply Chain Issues:

  • Like other toy companies, Build-a-Bear pre-stocked inventory to prepare for tariffs.
  • Careful, targeted price increases (e.g., mini “beans” increased from $9.50 to $10) help manage costs ([08:01–09:01]).

4. The Rise of “Kidulting” and Adult Consumer Appeal

• Adult Customers Fueling Growth:

  • Remarkably, 40% of Build-a-Bear sales are to adults purchasing for themselves—not just for children ([11:36–11:47]).

    “Majority of the customers are children... but 40% are adults buying them for themselves.” – Jackie Peyser [11:44]

  • The trend of “kidulting” (adults buying toys for themselves) is significant across the industry; adults seek nostalgia and fulfillment of childhood wishes ([11:50–13:19]).

    “I talked to a couple of really big Build-a-Bear fans, and I would say 75% of the ones I talked to said, ‘Well, I couldn’t afford one when I was a kid, and now I can.’” – Jackie Peyser [13:19]

• Licensing = Key to Adult Appeal:

  • Partnerships for licensed bears (Star Wars, Hello Kitty, Harry Potter, Pokémon) drive collector enthusiasm and bring new demographics ([13:34–14:22]).

5. Lessons for Retail – and What’s Next

• Value of the In-Store Experience:

  • Build-a-Bear's story highlights continued demand for unique, memorable in-person retail experiences, even as broader trends shift online ([14:49]).

    “There is still some value in an in-store experience if you’re giving something unique to the customer.” – Jackie Peyser [14:49]

• Future Growth and Potential Limitations:

  • Plans to open 60 more stores in the coming year, but the company is still much smaller than many toy peers (annual revenue ~$500M) ([15:13]).
  • Vulnerable to economic shifts and price fatigue, but strong new-product pipeline and strategic adjustments have helped safeguard success ([15:13–16:18]).

Notable Quotes & Memorable Moments

• “It’s unheard of... for a toy company, specifically one that’s in a mall, that’s pretty remarkable.”
  – Jackie Peyser [02:09]

• “They get the kids involved so they can press on the pedal to stuff them themselves. Then they go through, like, a heart ceremony...”
  – Jackie Peyser [04:20]

• “This is actually a really fascinating trend in the toy industry and they call it kidulting.”
  – Jackie Peyser [11:50]

• “Seeing a toy that maybe you loved when you were a kid and now having adult money and being able to buy it for yourself...”
  – Jackie Peyser [12:13]

• “They have been really smart about keeping track of social media... there was a bat that they released during Halloween, and it was so popular, it sold out online, it sold out in stores.”
  – Jackie Peyser [12:45]

• “There is still some value in an in-store experience if you’re giving something unique to the customer.”
  – Jackie Peyser [14:49]

Timestamps for Important Segments

• 00:40: Build-a-Bear stock performance surprises analysts
• 01:33: 1200% stock price increase in five years
• 03:07: The unique in-store experience
• 04:57: Bear cost breakdown
• 05:32: Malls are struggling, so why is Build-a-Bear thriving?
• 07:16: Operational changes for efficiency and resilience
• 08:01: Navigating tariffs and changing supply chain
• 11:44: 40% of customers are adults buying for themselves
• 13:34: Licensing and appeal to collectors
• 14:49: Retail lessons and future outlook

Conclusion

Build-a-Bear’s remarkable growth defies the odds amid declining mall traffic and retail upheaval. Fueled by a unique in-store experience, smart operational shifts, and the rise of “kidulting” among adults, the company’s story demonstrates the lasting power of nostalgia and experiential retail. However, with economic headwinds and consumer price sensitivity, Build-a-Bear must continue evolving to sustain its momentum.