Toys were an especially hot seller this year on Black Friday and Cyber Monday amid a wave of amazing discounts by retailers. Unfortunately for ailing discounter Kmart, deal-seeking parents likely bought toys for their children elsewhere due to the chain's mostly noncompetitive prices as compared to the largest toy sellers around.
Kmart, which is owned by Sears Holdings (SHLD) , had toy prices that were 6.5% more expensive than digital juggernaut Amazon.com (AMZN) on Black Friday, and a whopping 11.9% pricier on Cyber Monday, according to data from Bloomberg Intelligence. Kmart's price gap on toys with Walmart (WMT) during the two most critical shopping days of the year wasn't much better. Bloomberg Intelligence points out that Kmart's toys were 10.8% more expensive than Walmart on Black Friday, and 8% pricier on Cyber Monday.
So much for Kmart partaking in what looks to be a bumper holiday season thus far in toys.
"Our store checks indicate one of the better weekends for toys that we've experienced in the post-recession era, especially when we consider the shift to digital has pulled some shoppers out of the store," says BMO Capital Markets analyst Gerrick Johnson. "Toys 'R' Us had the most foot traffic of the 'Big Three' U.S. toy retailers, likely because it had the broadest array of door-buster and Black Friday deals," Johnson said. Walmart has had a solid showing on toys as well since Thanksgiving Day, he added.
Target (TGT) had the least-trafficked toy department from Thanksgiving Day through the long weekend as shoppers likely took advantage of some stellar early deals from the retailer, says Johnson. The company held a promotion for 20% off all toys and games from Nov. 20 through Nov. 23. From Nov. 24 to Nov. 26, Target offered a deal to buy one and get one 50% off on brands such as Disney (DIS) Princess and Hot Wheels by Mattel (MAT) .