But some stock analysts doubt these steps will stem the flow of red ink or prevent Wal-Mart Stores Inc. from becoming the top U.S. toy retailer, a prospect that would have been hard to believe even a couple of years ago. He also said the No. 5 toy retailer is counting on its mall locations nationwide and deep discounts on some toys to win customers. Sixty percent of the company's receipts stem from sale items in the front of the store. Other retailers, including some department stores that have resumed selling stuffed animals and other playthings, also are vying for a piece of the toy market. Electronics chains, such as Circuit City Stores, have expanded their selection of educational products.
Warehouse clubs are a player as well.
It's tough to stay in business . . . He worries about the pricing practices of Caldor and other discounters that mark down toys as a means of attracting customers. They can afford to lose money in the toy aisle, he said, because they are selling other commodities. To succeed in such a climate, Jayson's Toy Center and its sister stores in the Bronx and Westchester County try to hire knowledgeable staff who can explain how a toy works and whether it's appropriate for certain ages. They also have frequent sales and even offer layaways.