BUSINESS: Toys march to war...with Wal-Mart

Toy manufacturers are worried for 2004. Their big concern for this year is not Santa, it's Wal-Mart.

Wal-Mart's pricing with large discounts makes selling toys unprofitable for other retailer stores. Many of those other stores are likely to order fewer products, creating a tail-spin for toy stores everywhere. Even the toy collectors are nervous. By lowering the prices, a flood of cheaper toys may take value from a future "collectable" status. In 2003, the toy industry suffered another decline in sales. So now the toys march to war, or rather the makers of those toys. With the bankruptcy of FAO Schwarz and the Zany Brainy last year, and the chain KB Toys closing many of their stores, many toy manufacturers see the importance of fighting this battle with the price giant Wal-Mart.

Philadelphia Inquirer

To protect themselves and toy retailers they see as key to their profits, some manufacturers plan to deliver fewer hot toys to Wal-Mart and to have more exclusive launches at chains such as Toys R Us Inc. It is a rare instance of manufacturers challenging the biggest U.S. retail juggernaut and its low-price approach to business.

In the conspiracy world, Wal-Mart reigns high on the list. Many refer to them as being part of the NWO or New World Order, which will take over society and run the world. But how exactly do you run the world? Take over a open market and rise to the top? That would be the same thing that Microsoft has done, and many other companies too. Is taking over a specialized market the key to the NWO? Then perhaps some of the NWO leaders could be from the toy world as well...Rubik's Cube, Cabbage Patch Dolls, Baby-on-board signs, Pokemon, the Power Rangers, etc. All of those toys found an open market and did very well. But thanks to Wal-mart, those days could be coming to an end.

New World Order or not, having to a toy store and not an "everything" store is important. But how important will not be decided by a manufacturer or a large corporation. Whether the toys win or Wal-mart wins, will ultimately fall into the consumers hands.

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