It’s shaping up to be a competitive holiday season and Target is looking to do some big business in the toy department.
The retail landscape has been challenging for the big boxes this year as inventory backlogs and inflationary concerns have taken big bites out of the bottom line. There is perhaps no better example of the impact than Target, which experienced a nearly 90% drop in profit for Q2. Now, they’re striking back with a multi-pronged approach to win with families this fall.
In a statement, Target said that it’s embarking on a “differentiated strategy to drive toy assortment growth” this season, starting with several major initiatives:
- FAO Schwarz x Target plus Bullseye’s Top Toy List: A newly expanded, multiyear partnership deal with iconic toy retailer FAO Schwarz kicked off with a host of exclusive toys and games and the unveiling of this year’s top toy list.
- Disney Store at Target Expansion: After launching with 25 locations in 2019, Disney Store at Target will expand to more than 200 locations by the end of the year.
- Marvel Studios Black Panther: Wakanda Forever promotions: Paired to the Disney Store x Target expansion, Target will offer exclusive toys inspired by the new Black Panther film. In-store signage and community events will support the efforts.
- Exclusive and Affordable Toys: The company says it’s curating more exclusive items at affordable prices to be paired with in-store experiences and partnerships.
- Exclusive Collectibles: More than 150 exclusive collectibles will be offered at Target this season, the most in its history. Hasbro, Funko, McFarlane Toys, LEGO, Mattel, and others will contribute to the assortment.
- LEGO Ideas Contest: Consumers will have a chance to submit product ideas in partnership with the LEGO Ideas platform. A winning design will be sold as an exclusive LEGO set at Target and LEGO Stores.
On Target’s Q2 earnings call with investors and analysts, Executive Vice President and Chief Growth Officer Christina Hennington specifically called out toys as a bright spot for the Bullseye. “[We’ve seen] high-single-digit comparable growth in toys, an encouraging sign as we plan for the fourth quarter holiday season,” she said.