The battle for the US toy market has begun! What will you compete for this holiday season?

It is learned that on August 30, Walmart released the list of top toys for the 2022 holiday season, firing the first shot in the battle for the US holiday season toy market. Toys are an important category of holiday season sales, and major retailers are racking their brains to compete for this market. Affected by many factors, the US toy market is changing this holiday season.

Giants compete, Walmart steps up to catch up with Amazon

Research shows holiday shopping could start earlier this year, and retailers are hedging against consumer uncertainty by starting sales earlier and trying to stretch the holiday shopping season out to drive more sales.

Walmart is clearly aware of this, with Laura, senior vice president of Walmart, saying: "Consumer money may be tight for the rest of the year, and finding the lowest-priced toy gifts is a priority for many families this year."

As a result, Walmart's list offers more toys for kids of all ages and at more price points than ever before.

Walmart also hopes to grab more toy market share during the holiday season through this move. In the entertainment category to which toys belong, Walmart and Amazon have a large gap. According to the PYMNTS report, Amazon's share in the "books, sporting goods, hobbies and music categories" is almost five times that of Walmart.

Brick-and-mortar sales are on the rise

Walmart and other brick-and-mortar retailers expect to see more foot traffic as physical retail resumes this year. Macy's is also betting big on toys in 2022, with plans to have a Toys "R" Us store in every Macy's location by the end of October.

Lego, Mattel and other companies are also taking steps to sustain a toy industry that has been resisting downward pressure this year.

BNPL becomes an important competitive factor

Buy now, pay later (BNPL) is used more online than in-store, which may give Amazon and other e-commerce companies a slight advantage in BNPL usage in the fourth quarter.

Even though Walmart is pricing its hottest toys for 2022 at $50 or less, more consumers may turn to BNPLs this gift-giving season as inflation squeezes budgets.

In the retail industry, about half of consumers used BNPL in their recent online purchases, but less than 2% of stores offer BNPL for in-store purchases, according to PYMNTS.

During Black Friday Cyber ​​Monday and the second Amazon Prime Day in October, holiday toy shopping will reach its peak, and BNPL usage may also see a peak. Therefore, merchants need to better promote their BNPL.

Editor✎ Ashley/

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