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Wal-Mart Sparks Toy Price War Among Major Retailers

Walmart recently announced $10 pricing on 10 popular toys for the Christmas season, which sparked a Toy Price War according to a Wall St Journal report.  Wal-Mart’s list includes select items in toy line staples such as Barbie, Tonka Trucks, Hot Wheels, Play-Doh, and The Littlest Pet Shop.

Amazon quickly followed suit and matched the pricing on some of the toys on the list, at least for the ones they also carry.  However, unless you’re a member of Amazon Prime or don’t go over the $25 order threshold you’ll have to pay shipping, which can be over 50% of the price for a $10 item.

kbtoys.com (eToys Direct, Inc.)Not to be outdone, the next day KBToys announced it was slashing prices to the sub-$10 level on over 200 toys for the Christmas 2008 season.

Anyone have any opinions on this?  Looks like Walmart is willing to take a loss on the toys to get people in the store,but if KBToys does the same, they’ll likely put themselves out of business.

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