Just days after Halloween, the
annual battle to win the dollars of toy-buying parents is already off to a
fierce start.
Discount retail giant Wal-Mart is
slashing prices in an effort to keep rival Target from becoming the low-cost
leader this holiday-shopping season.
Until recently, Wal-Mart had priced
its toys higher than those advertised by Target.
But recently, the company issued a
new price list, slashing the sticker on many hot toys.
Wal-Mart’s
new toy prices now beat Target’s prices by just a few
pennies, but there are still some significant price differences between the two
retailers.
For example, Wal-Mart is selling a
Barbie doll embedded with a video camera for $39, or $6 less than Target. But
Target has priced Stinky the Garbage Truck — a Matchbox truck that tells jokes
— at $49.99, after a coupon, or $6 less than Wal-Mart.
Consumers shouldn’t lose out
because both retailers say that if a shopper presents them with a print ad
featuring a lower price, they will match it.
Toy sales are key to retailers’
success during the holiday season because, no matter how the economy performs,
parents will still buy stuff for their kids.
This year, with the economy
somewhat improved, retailers hope they can lure shoppers with toy deals and
encourage them to make other purchases.
Both Wal-Mart and Target are
competing on prices to draw in shoppers, but Target may have the edge this
holiday season.
Shoppers at Target stores get an
extra 5 per cent discount on all purchases, including toys, if they pay with a
Target credit or debit card or the Target Visa card.
Far fewer Wal-Mart customers use
credit cards of any sort, according to analysts, and while Wal-Mart’s Discover
Card gives buyers 1 per cent back on purchases the retailer has yet to match
Target’s 5 per cent discount.
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