Playing for keeps in fun and leisure - Wal-Mart - Merchandising: sporting goods and toys
Author: DSN Retailing Today

Low prices and a wide selection of merchandise has made Wal-Mart the nation's top retailer in both toys and sporting goods and the company should add to its market share in 2004 as it continues to pressure specialty retailers in both industries.

With large toy sections in its approximately 3,500 U.S. stores, Wal-Mart has been the nation's leading toy retailer since the late 1990s when it surpassed Toys "R" Us. Despite a soft toy industry that's hovered around $20 billion in annual revenues since 2000. Wal-Mart has extended its lead through relentless growth and by jumping on trends quickly to beat toy specialists at their own game.

A case in point is the educational toy sector, which for years was owned by specialty retailers such as Zany Brainy and Toys "R" Us' Imaginarium outlets. Wal-Mart made a big push into the sector a few years ago with products from key vendors such as LeapFrog and its own private label and was able to co-opt a key point of differentiation from its retail rivals, Due in large part to Wal-Mart's entry into the sector, both Zany Brainy and Imaginarium are in the process of shutting down all 125 of their standalone stores.

Wal-Mart's sway in toy retail has been accentuated by the continued growth of its supercenters, which attract more frequent customer visits and generate a higher turn in toy sales. That phenomena has motivated No. 2 toy retailer Toys "R" Us to open small "Toy Box" departments in more than 1,000 A1bertson's supermarkets and KB Toys is taking a similar approach with toy sections in Sears stores and CVS drug stores.