This holiday shopping season, American retail giants like Target and Walmart are stocking more toys and gifts priced under $10 on their shelves, such as Barbie dolls. This sales strategy aims to attract budget-conscious shoppers.
According to Reuters, for retailers and toy manufacturers, selling a large number of inexpensive gifts aimed at consumers with incomes of $50,000 and below helps them increase sales and revenue during key holiday periods.
The inflation rate in the United States has remained high, with prices of groceries, particularly eggs, skyrocketing.
Isaac Larian, CEO of MGA Entertainment, the manufacturer of Bratz dolls, stated that 60% to 70% of the company’s sales come from toys priced at $10 and below. Their Miniverse figurines, priced mostly under $10, are now featured as top toys on the shelves of retail giants like Target and Walmart.
Larian mentioned that out of the company’s 2500 toy varieties, 625 are priced at $10 or less.
Walmart and Target are also promoting other $10 items.
Bank of America credit card data shows that low-income consumers lag behind middle to high-income consumers in shopping enthusiasm in the two weeks before and after Thanksgiving.
Data from financial services company D.A. Davidson reveals that the average price of Walmart’s 70 top toys is $40.16, a 10% decrease from last year, indicating that retailers are restructuring their products to cater to budget-conscious shoppers. According to the financial services company, the average price of Amazon’s 389 top toys has decreased by 3%.
A spokesperson for Target mentioned that the retailer has intentionally increased the allocation of toys under $20.