Walmart's 10 for $10: Like a dollar menu for toys
Walmart plans to offer 100 such items, all for $10, according to the LA Times. Walmart says it's been hard at work all year, getting suppliers to meet this price on popular toys like Barbies and action figures. It's a real win for toy-buying consumers, but for competitors, it presents another obstacle to survival.
Last year, Walmart featured 10 toys for $10. KB Toys took this as a challenge and slashed prices at its own stores. KB Toys didn't even make it to Christmas. It filed for bankruptcy and abruptly closed all stores on December 12, 2008.
This year, Toys R Us is in Walmart's sights. That retailer has already opened additional toy departments inside Babies R Us stores and stand-alone locations in malls. The Toys R Us hot toy list prominently features inexpensive items, and its in much stronger position to weather this storm.
But it's not even October. Imagine how intense this price war might get. Not a very playful thought.