Key facts
- Toy prices have seen an 8.3% increase in the US from February to September.
- Year-over-year toy price growth reached 6.6% in September, the highest since 1988.
- Small toy stores face reduced profit margins, with one owner's margin falling to 5% from 7-8%.
- Tariffs, fuel prices, and supply chain issues are contributing factors to rising toy costs.
- Viral toys like NeeDohs are helping to drive demand and foot traffic for stores.
Toy prices are experiencing a significant increase across the US, with small, independent toy stores struggling to absorb the rising costs. Factors such as higher shipping fees, tariffs, and broader economic inflation are driving up prices, impacting profit margins for retailers like Clever Monsters in New York City and Toy Safari in California. While larger toy manufacturers like Hasbro and Mattel are also facing cost pressures, they have greater financial flexibility and have benefited from tariff refunds. The trend of 'kidulting' and viral toys on platforms like TikTok are providing some relief by driving demand and foot traffic, but the overall cost environment remains challenging for smaller businesses.