Business Insider·4 min read·medium

Toys are facing their biggest price spike in years. Mom-and-pop toy stores tell us how they're getting by.

Toys are facing their biggest price spike in years. Mom-and-pop toy stores tell us how they're getting by.
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Toy prices in the U.S. have risen by 8.3% due to supply chain disruptions, geopolitical tensions, and tariffs. Small, independent toy retailers are struggling to absorb these costs compared to larger competitors with more financial cushion.

Why it matters

The report illustrates the tangible impact of macroeconomic pressures and trade policies on small businesses and consumer affordability.

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Terra Toys, a toy store in Austin. Sylvia Edwards Toy prices have gone up 8.3% since February due to tariffs, geopolitics, and supply chain issues. Local mom-and-pop toy stores across the US spoke to the rise and its impact on their businesses. Legacy toymakers also grapple with the impacts, looking toward tariff refunds. Toy prices are rising fast across the country— and local toy stores are struggling to play along. At Clever Monsters, a toy store in NYC, co-owner Daniel Orlov said he has to recalculate prices order by order, at times cutting into his own profits to keep them at a reasonable level for his customers. Sometimes, he knows before putting some toys on the shelves that he won't make anything off them. The struggle results from higher shipping fees, tariffs, and customs charges and reflects a broader inflationary moment in the economy.

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