Home / Business / Local

Let the toy wars begin

By SCOTT DONNELLY sdonnelly@poststar.com | Posted: Sunday, November 1, 2009 12:15 am | (0) Comments

Font Size:: Default font size; Larger font size

T.J. HOOKER T.J. Hooker - thooker@poststar.com Kim Smith, co-owner of Dog Ate My Homework, passes out treats to kids during the annual Glens Falls Downtown Trick or Treat Night held on Thursday, October 29, 2009.

One could call them toy soldiers.

As the price war rages among some of the nation's largest toy retailers, including Wal-Mart, Target and Toys 'R' Us, local, independently owned toy sellers are girding themselves for the ultimate battle - the holiday shopping season.

Michael Smith, owner of Dog Ate My Homework on Glen Street in Glens Falls, is on the front lines, and he's armed himself with optimism and faith that his business strategy will carry the day.

"I'm not a sage; I couldn't tell you exactly what's going to happen (this holiday season)," Smith said. "I will tell you that I have what I feel to be the right mix of products. I understand the price points for people are a little bit less. But I really believe what Sy Syms said - 'An educated consumer is our best customer.' "

On the other end of the battlefield stand titans who have begun a scorched earth campaign - Wal-Mart is using toys as a loss leader again this year, pricing 100 of what the company considers its most popular toys for less than $10 each. Last holiday season, the retail giant priced just 10 toys for $10 each.

In retaliation, Target has announced it will match Wal-Mart's price on those toys that Target also carries and has cut the prices on other toys by 25 percent or more.

Those moves followed Toys 'R' Us's first salvo, fired during the summer months, in which it offered what it called "Black Friday-like" discounts as part of a "Christmas in July" promotion.

"I think that whenever somebody does that kind of thing and gets that kind of press on it, it certainly is going to have an impact on everybody," said Linda Ambrosino, owner of G. Willikers toy store on Broadway in Saratoga Springs.

But like Smith, Ambrosino has faith that it's the nature of independent, specialty toy stores to attract consumers who are looking for something they can't get at larger retailers - a mix of quality, educational toys, personalized service and a sense of community.

"I'm hoping that our customers, Mike's customers, customers that drive up to Sutton's Marketplace (in Queensbury) do it because they're making conscious efforts to support the community - to look for something different."

Several calls placed to Sutton's Marketplace, which carries a selection of toys, were not returned.

Still, overcoming the combined pressures of deep discounts and what's promising to be a slow ascent from one of the worst recessions on record won't be an easy battle.

According to the National Retail Federation, which conducts a survey every year on consumers' holiday shopping plans, more than half of holiday shoppers said sales and price discounts or regularly low prices will be the most important factor in their decisions about where to shop this year. Quality ranked as the No. 1 factor for just 11.8 percent of consumers, and 4.4 percent said customer service would guide their wallets.

Kathleen McHugh, president of The American Specialty Toy Retailing Association, said she thinks consumers tend to weigh their toy purchases differently than other shopping choices, mainly because children's development and even safety can be at stake.

"It's something the big-boxes have been doing for years," McHugh said. "It's nothing new. They've been turning children's playthings into a low-priced tool to get people into the door, and that's really unfortunate. But there's a difference between (big-box shoppers and) your shoppers at your local neighborhood toy store.

"Our retailers are not interested in sending consumers home with 100 toys. They're interested in giving their children a few good toys that their children will play with for a long, long time ... toys that are engaging, that allow them to create their own play."

For his part, Smith said even though his regular customers are aware of his offerings, he's being a bit more proactive this year because of the heightened competition.

"I'm going to advertise a little bit more," Smith said. "I think people have heard of me before. Maybe they've thought about coming to me before. I'm going to give them a little bit more of a reason to come to me."

Posted in Local on Sunday, November 1, 2009 12:15 am Updated: 1:14 am. | Tags: Business, Retail

Print Email