Wal-Mart's holiday bargain: 100 toys for $10
The big-box retailer looks to spur holiday sales with a list of 100 toys for $10 each.
NEW YORK (CNNMoney.com) -- Wal-Mart is looking to jump-start holiday sales by expanding last year's $10 toy incentive tenfold, the company said Wednesday.
The world's largest retailer said it will offer 100 toys, from Barbies to Transformers, for $10 through the Christmas holiday. Last year, the program included only 10 toys.
The company decided to expand the $10 program and roll back prices "at a time when our customers were ready to make purchases," said Laura Phillips, Wal-Mart's vice president of toys, in a statement.
Wal-Mart said research has shown that 70% of its customers plan to start shopping for holiday items before Halloween.
More than half of Wal-Mart shoppers have already started budgeting for their holiday shopping, and nearly 40% say they are watching for deals, according to the company.
Hoping to attract shoppers. The incentive plan comes as retailers prepare for what is expected to be a lackluster holiday shopping season.
Holiday sales, which are largely driven by toy sales, can account for half of annual profit at many U.S. retailers.
Last year, toy sales declined 5% in the forth quarter, and 3% overall, generating $21.64 billion in 2008, versus $22.32 billion in 2007, according to market research company NDP Group Inc.
While Wal-Mart (WMT, Fortune 500) has weathered the recession better than its higher priced rivals as consumers hunt for bargains amid the weak economy, the discount retailer is not immune to the downturn in sales.
The Bentonville, Ark.-based company said last month that sales at stores open at least one year, a key measure of retail activity, fell 1.2% in the second-quarter versus the year before.
Wal-Mart's latest sales figures were considered worrisome by some analysts, who had expected same-store sales to rise 1% in the second quarter.
And with unemployment continuing to rise and household budgets still under pressure, many retailers are looking for ways to appeal to price-conscious shoppers, especially with the crucial holiday shopping season quickly approaching.
What's on the $10 list. Under the expanded $10 program, Wal-Mart will offer a "newly released toys, top brands and classic toys that shoppers seek out each holiday season."
Some of the toys are being introduced at $10, while others are being reduced by up to 50%, the company said.
The following is a partial list of the brands being offered:
- New Transformers Revenge of the Fallen Deluxe Action Figures
- Barbie Cut and Style Rapunzel
- Games such as Connect 4, Battleship, Monopoly, Trouble and Jenga
- Vtech Explore and Learn Helicopter
- Tonka Light and Sound vehicle assortment (firetruck, dumptruck, etc.)
- New Littlest Pet Shop Online Animals (virtual pet) or Littlest Pet Shop Playpack sets
- Clean-Up Pup Barbie Play Set and Mermaid Splash & Style Barbie
- New Play-Doh Burger Builder Set
- New Garanimals line Bath Boat (with squirter) and ABC 50 wood blocks kit
- Hot Wheels Trick Track
- LEGO Bionicle Legends set
- New Nerf-N-Force Sword
- My Little Pony So Soft Newborn
- Little Dreams Interactive Baby Doll