Target Puts Toys, Tech, and Price Front and Center for the Holidays

Target is enhancing its annual Bullseye’s Top Toys list with the introduction of a 360° shoppable experience on Target.com that will let shoppers explore a virtual room full of items from brands like Barbie and Play-Doh. The retailer is also emphasizing its low prices and exclusive partnerships, including a multiyear FAO Schwarz collaboration that will continue into 2023, which together could help the company maintain a competitive edge in what might be a downbeat holiday season.

The experience aims to “make toy discovery easier and more joyful,” according to Target. Brands and franchises on the overall list include Pokémon, PAW Patrol, Marvel, and LEGO, which will add to Target’s Disney and FAO Schwarz partnerships to deliver a wide selection of popular choices.

Target will also put an emphasis on affordability, such as by noting that its selection of the season’s hottest toys starts at $7.99 and that most of the items from the FAO Schwarz collaboration and the Disney100 Retro Reimagined collection — which celebrates Disney’s centennial anniversary — carry price tags under $25.

“We know affordability is top of mind for many of our guests as we head into the holiday season, and we’re committed to delivering exceptional value as they make plans to celebrate with friends and family,” said Jill Sando, EVP and chief merchandising officer at Target, in a press release.

Target’s emphasis on holiday savings makes sense, given that shoppers are still cautious following the recent year of high inflation. While price growth tapered off during the summer, retailers still need to contend with the resumption of student loans, which some experts believe could weigh on overall holiday results due to the 40 million affected consumers seeing an average of $300 added to their monthly expenses.

Target has its work cut out for it if the company wants to catch up to rival Walmart, which firmly outperformed Target in Q2 2023 when Walmart saw a sales growth of 6.4% compared to Target’s 5.4% decline. If the 2023 holiday season ends up as gloomy as some think it may become, combining toys from popular franchises with prices that catch parents’ attention could prove to be a winning move.