Target Lowers Toy Prices

In order to woo customers this holiday season, major discount retailer Target Corporation (TGT - Analyst Report) recently announced an aggressive price cut on toys. The announcement came on the back of the Wal-Mart Stores Inc. (WMT - Analyst Report) news on offering 100 toys for $10 each through the Christmas holiday, up from 10 toys offered last year.

Target slashed the price of selective toys by up to 50%, which include the Barbie Fashion Doll ($5), GI Joe Tough Troopers Figure ($14.99), and the Fisher-Price Little People Play 'N Go Farm Set 50th Anniversary edition ($11).

The holiday seasons are generally important for toymakers and retailers, who expect an uptick in demand with more children splurging in toy stores. However, toy companies did not reap any benefit in the 2008 holiday sales season due to recessionary effects, as consumers cut back their spending and prioritized their purchases.

Realizing the fact that customers may be reluctant to shell out more for toys, toy companies like Hasbro Inc. (HAS - Analyst Report) and Mattel Inc. (MAT - Analyst Report) are introducing new items at lower prices, and retailers are offering discounts to offset the impact of economic headwinds.

In a separate story, Target is slated to open 26 new stores that will create 5,000 new jobs. The news definitely gives a boost to the dwindling job market. The stores are scheduled to open on Oct. 11, 2009.

Of these 26 stores, 21 are general merchandise stores, of which 18 also have expanded food options, whereas the remaining five are full-grocery SuperTarget stores.

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