Toys "R" Us Targets Value Shoppers

Toys "R" Us has been losing to Wal-Mart for years. The discounter is the largest seller of toys in the U.S. Toys "R" Us has added "value" sections at the front of its stores selling very inexpensive toys. looks to be partly a response to that as well as a way to drum up sales in a tough environment where people are watching every penny they spend.

Toys "R" Us has rolled out shops in the front section of its U.S. stores, highlighting toys for $3 and under as it responds to the recession that has made even indulgent parents cut back on toys for their kids.

The privately-held specialty toy retailer, which operates almost 850 Toys "R" Us and Babies "R" Us stores in the United States, said its "$1-$2-$3 Fun" shops will carry about 100 items at those prices.

The effort to woo shoppers comes after U.S. toy retail sales fell 3 percent to $21.64 billion in 2008 from a year earlier, according to market research firm NPD Group.

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