For retail stock watchers, nothing says "happy holidays" like retailers' bloody drive to slash toy prices as the end of the year approaches. Well before Black Friday's mayhem, major retail discounters are already ramping up their efforts to offer bargain-hungry consumers the lowest prices.
According to a Wall Street Journal report, Wal-Mart
The Bentonville Behemoth may be reaping the consequences of its recent decision to raise prices. Wal-Mart wanted to attract more customers, but instead, it may be ceding its reputation for rock-bottom prices to Target.
Perhaps sensing blood in the water, Target's offering additional incentives for customers to spend. Its initiatives include bonus 5% discounts for shoppers who use Target's credit cards or Target Visa cards.
Although Wal-Mart and Target are formidable forces in toys, they're not the only rivals duking it out. Amazon.com's
With many shoppers still pinched for cash, the stakes for this holiday season are higher than ever for retailers. If financial constraints force them to choose, shoppers will likely place greater priority on gifts for kids than on high-end offerings at Williams-Sonoma
Amid retail's vicious competitive landscape, and the toy wars are a crucial component of retailers' strategies for luring in customers. Shareholders must hope that retailers' gambits pay off, lest dismal sales ruin the holidays for their stocks.
Who do you think will win the war in toyland? Let us know in the comment box below.
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