How will Spending on Toys be Effected this Holiday?

 

As the holiday’s approach many wonder where toy sales will be in response to the financial crisis taking place currently.  Everyone is looking to cut back spending but will they cut back on their spending for their children’s gifts of toys?

Grandparents Richard and Betty Evans pledge to do no such thing.  The have made no plans to limit the spending they normally engage in when shopping for toys for their grandchildren.  Instead like many parents and grandparents I have spoke to they plan on cutting back the spending on gifts exchanged between adults.

 

Even with many pledging to not allow this economic crisis effect their spending on children’s toys many feel that adults will be more careful in their toy selection, as a result taking more time to think whether the child will actually use this toy a week from receiving it.  I feel that many retailers will see higher sales in the less expensive toys this holiday season. 

 

Retailers such as Wal-Mart and KB Toys have taken action by lowing prices of projected popular toys for the holidays. At the same time industry experts predict products like Furreal Friends Biscuit a golden retriever who looks like a real dog and responds with movement to voice commands to be a hot toy for this holiday season even with its $180 dollar price tag. 

 

The National Retail Federation trade group has estimate a weak growth in holiday toy sales.  The release shows an estimate of 2.2% growth to just over $470 billion dollars in sales.  This if accurate will be the slowest since 2002.

 

By: Patrick Sullivan