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Over the past twelve years, expenditure on household toys had grown by almost 200% (from $265 in 1980 to $525 in 1992) because of the many baby boomer's with children who were entering their peak earning years. Moving forward, toy demand was expected to strengthen because of the onset of baby boomlet's that will be raising children and subsequently purchasing toys.
Competition between toy retailers was intense as they competed for lower costs. Toy's ?R' Us expressed concern about slowing sales as they began experiencing pressure from discount retailers (IE: wall-mart and Kmart) as the discounters market share grew from 20% to 34% between 1989 and 1994 respectively...
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