Retailers focusing on sub-$10 gifts to attract budget-conscious consumers for holiday season.

From Nasdaq: 2024-12-19 13:38:29

Retailers like Walmart, Target, and Five Below are focusing on sub-$10 gifts this holiday season to attract budget-conscious consumers amidst high inflation. These low-cost items, such as toys and gift wrap, are aimed at households earning under $50,000 annually. However, relying too much on cheap products could hurt sales volumes and increase theft rates.

Barbie dolls priced under $10 and discounted gift sets are being prominently showcased by Walmart, Target, and Five Below to drive store traffic and impulse purchases. While these items help boost margins compared to necessities like food, retail analysts warn of potential challenges like eroding sales volumes. Walmart has lowered the average price of its top toys by 10% year-over-year.

Retailers are expected to continue leveraging value-driven pricing to increase holiday sales, but disparities in spending between income groups could impact overall performance. Sub-$10 pricing strategies may extend beyond the holiday season to maintain customer loyalty. The long-term success of these strategies will depend on consumer sentiment and economic trends in 2024.



Read more at Nasdaq: Retailers target sub-$10 gifts to boost holiday spending amid inflation