Advertisement

Wal-Mart toy price cuts hurting retailers

BENTONVILLE, Ark., Nov. 19 (UPI) -- Wal-Mart has cut prices on about a dozen hot Christmas toys, according to a survey conducted by Banc of America Securities.

The survey found Wal-Mart's prices were 12 percent cheaper than Toys "R" Us and 8 percent less than prices at discount retailer Target, the Wall Street Journal reported.

Advertisement

Toys "R" Us said Wal-Mart's price cuts caught it by surprise and hurt its third-quarter results, reported this week.

Retailers are used to Wal-Mart rolling back prices on toys, but the move came much earlier this year, in September.

While parents may appreciate the price savings, toy retailers are not so happy, nor are toy manufacturers who fear the price cuts will cheapen their brand names, quash innovation and accustom consumers to only buy toys when they are on sale, the Journal said.

Many toy retailers say they can't afford to match Wal-Mart prices, particularly when they are below cost -- for example, Wal-Mart sells Barbie Swan Lake for $15.84, well below the wholesale price of $17, according to a list of manufacturer prices viewed by the Journal.

Latest Headlines

Advertisement

Trending Stories

Advertisement

Follow Us

Advertisement