Retailers expect 10 and under gifts to drive store traffic
Cheaper gifts are aimed at cashstrapped consumers
Lower prices could drive impulse purchases

NEW YORK, Dec 19 Reuters Retailers including Target and Walmart are stocking shelves with more toys and gifts such as Barbies that cost less than 10 this holiday season, a strategy aimed at attracting cashstrapped shoppers.

For retailers and toymakers, selling a bounty of cheaper gifts aimed at consumers earning 50,000 or less helps boost volumes and sales in the key holiday period that is five days shorter than last year and forecast to be lackluster.

The merchandising plan also helps cushion profits because discretionary goods, like toys or clothes, have richer margins than consumable items such as food, which shoppers, especially lowincome ones, are spending more of their money on due to inflation.

U.S. inflation has been persistently high, with grocery prices, and eggs in particular, soaring.

Privatelyheld Bratz doll maker MGA Entertainment is seeing 6070 of its sales come from toys priced 10 and under, said CEO Isaac Larian. Its Miniverse figurines listed as top toys by retailers including Target and Walmart are mostly under 10.

The consumer is very, very stretched, and theyre going to be frugal, Larian said. A kid who is going to get four to five toys in the past, maybe will get two to three this year.

MGA has 625 toys out of 2,500 that retail at 10 or below, Larian said.

Discounter Five Below  named…