Independent toy shops face big competition this holiday season

There’s trouble in Toyland.

Higher inflation is weighing on consumer behaviour this holiday season, and independent toy stores could face fierce competition from big box retailers.

Toy retailers say bargain hunting is the name of the game this holiday season, and it’s adding an extra layer of pressure as they already struggle with a slow recovery from the pandemic.

Retail strategist Lisa Hutcheson says bigger chain stores may come out on top.

“Think about the Walmarts and the Costcos, because people are just going to shop those aisles because they’re out of convenience,” she said. “So I think they’re probably the ones that are going to get them this business.”

Erin Salisbury of the Swag Sisters’ Toy Store in Toronto says she has seen shoppers in her store check the prices of products on their phone for a cheaper deal online. Others buy toys from her store that they’ve already ordered from Amazon as a backup in case the delivery does not arrive in time for the holidays.

But when the delivery does come, Salisbury says customers often return what they bought from her store.

KPMG recently found 70 per cent of Canadians do not plan on spending as much on discretionary items like apparel, electronics, or toys as they did in previous years. Retailers say they are also having to deal with an increasing consumer interest in secondhand goods and a shift toward experiential and digital gifts.