Though inflationary fears are ebbing, macroeconomic fears are still top-of-mind for consumers, and retailers are recognizing that as the holiday shopping season begins.
Unveiling its annual “Top Toys” list earlier this week, Target opted to highlight the many options on offer for under $25, including toys from brands such as Star Wars, Lego, Hot Wheels and Disney’s 100th anniversary celebration line.
“We know affordability is top of mind for many of our guests as we head into the holiday season, and we’re committed to delivering exceptional value as they make plans to celebrate with friends and family,” said Jill Sando, executive vice president and chief merchandising officer of Target, in a statement. “With our most affordable Top Toys list yet, thousands of toys and games under $25, an exclusive Disney100 Retro Reimagined Collection, an only-at-Target FAO Schwarz assortment, and so much more, we’re ready to deliver the kind of experience that makes shopping at Target special.”
To complement those experiences, Target has developed an immersive online shopping experience where consumers can explore a virtual room full of the Top Toys, along with well-brands such as Barbie and Play-Doh. Consumers can directly purchase products from the room for pickup or delivery.
Target’s budget-friendly Top Toys list comes as the retail world is shifting to extend the holiday season through pre-Black Friday sales in October (including the recently ended Amazon Prime Days on Oct. 10 and 11) that offer steep discounts on select products. In a post-Prime Days release, Amazon touted that its customers “saved” more than $1 billion over the two days of deals.
Most other large retailers, including Walmart, Best Buy and Home Depot, either have held or are set to hold similar sales events. The moves are – at least in part – a response to expectations that consumers will be tightening their budgetary belts this holiday season.
A recent survey from Bankrate found more than half of consumers – 54% – feel financially burdened this year, with a full third citing inflation as impacting their shopping habits. As a result, 41% of consumers will seek out coupons, discounts and sales this holiday season.
Though inflation is down significantly from the highs of last year, consumers are still holding back on discretionary spending for a number of reasons, including the efforts to keep rising prices under control. The Federal Reserve’s efforts to tame inflation have pushed interest rates to the highest levels in two decades, making consumers reticent to take on even small debt for holiday spending.
Thus, a focus on more affordable gift giving. “Retailers, understanding their consumer and understanding their fixed budgets, are trying to get a bite out of that holiday shopping sooner rather than later and maybe get little bites over a longer period of time,” said Natalie Kotlyar, a retail analyst at BDO, told The Washington Post earlier this month.
