With the National Retail Federation predicting the worst holiday season since 2002 due to the slowing economy retail giant Walmart initiated its holiday price war by slashing the price of ten popular toys to just $10.  The items, which will be available in 3,500 Walmart stores nationwide, include the Play Doh Ice Cream Shoppe, a number of Barbie Dolls (Mariposa Barbie and Barbie and her Dog, Tanner), Mattel’s Hot Wheels Beast Bash and Trick Tracks, assorted Little Pet Shop VIPs, Fur Real Newborn Animals, Tonka Light and Sound Vehicles, and Bakugan by Spin Master, which many toy analysts believe will be the hot toy line for the coming holiday season (see “Bakugan Makes Hot Toy Lists”).  The suggested retail prices on most of the aforementioned items ranges from $15 to just over $20.

Since 2003 Walmart has had a history of aggressive toy pricing (see “Walmart Applying Toy Category Kill Shot”), and last year Walmart began its push for a bigger share of the all-important holiday toy market on the earliest date ever, October 1st (see “Walmart Starts War Early”), a strategy that the company has pursued again this year.  With consumer spending expected to be flat or just up slightly for the coming holiday season, this opening salvo won’t be the last barrage fired as price competition escalates in the coming months.