Bet you thought the holiday shopping season kicked off the day after Thanksgiving. Silly you. Wal-Mart kick-started the holiday price war this week, cutting prices by as much as 50 percent on its “Top 12 Toys of Christmas.” Special weekly toy sales will follow. The move comes about two weeks earlier than last year for the nation’s largest toy seller and discount chain, and reinforces an industrywide trend in which retailers try to reel in consumers earlier and earlier each year.
“The 800-pound gorilla from Bentonville, Ark., is going to change the whole dynamic of the holiday season,” said Stan Pohmer, a Minneapolis-area retail analyst. “They’re throwing a telegraphic punch very, very early that will set the tone for everyone else to follow.” Indeed, a Target spokeswoman said this week that the Minneapolis-based retailer would match Wal-Mart’s prices on toys, consistent with a long-standing policy to remain competitive on everyday items.
Among Wal-Mart’s deals: Fisher-Price’s digital camera for kids for $49 - $16 off - and Tonka trucks for less than $20, about 30 percent off. As for more deep discounts on the horizon? Stay tuned. “From the holiday perspective, we’ll make sure we have the latest and greatest, and offerings that will differentiate us from the competition,” said Brie Heath, a spokeswoman at Target.
“Beyond that, I just can’t tell you yet.” Wal-Mart’s pre-emptive strike likely is motivated by worries that consumers will cut back on spending this year in light of a continued housing slump and rising prices for gas and food. But it’s also a shot across the bow to other retailers. “Wal-Mart is telling competitors, ‘We are not going to lose market share on toys to anybody,’ ” said Britt Beemer of America’s Retail Group. “Just like when they slashed prices on 16,000 back-to-school items.