KANSAS CITY, Mo — Family-owned toy stores in Kansas and Missouri say inflation is a factor for them this year and it's leading them to make changes.
Brookside Toy and Science says manufacturers are routinely changing prices and that’s being reflected on prices they charge customers.
“Whatever the wholesale cost for me is, I have to pass that on, I don't really have a choice, I don't have any other income,” said Holly Pollard owner of Brookside Toy and Science.
Pollard stresses the holiday season is a critical time for small businesses and estimates it accounts for 40% of her annual sales. Due to an increase in wholesale, customers are having to pay anywhere between 8%-20% more for certain toys at her shop.
"I mean, sometimes it’s shocking and I actually would choose to not order a certain toy even if I really wanted it because I felt that it couldn't take the increase,” said Pollard.
Holiday sales for Brookside Toy and Science are down compared to the same time last year when her shop saw a record year in sales,
Pollard says 2021 was an exceptional year with more shoppers taking part in holiday shopping after staying home for a year due to COVID-19.
“Last year, I knew when it was happening that there'll never be another year like that,” reflected Pollard. "So, it was a treasure and I'm so thankful for it and this year, although the sales aren't there, I feel a little bit more like this is kind of that normal that we were all kind of striving for a couple years ago so I'm fine with it.”
Pollard’s store isn’t the only shop feeling the inflation pinch. The Learning Tree in Prairie Village has been in businesses for nearly 30 years and is having to change prices due to a significant increase in wholesale prices they’re paying.
"You know, it's so difficult to tell because it goes from 10 cents to hundreds of dollars, I mean, one example is one of my favorite items that I have sold for 20 years was $25 at the beginning of the year, it’s now $45 and I'm not going to reorder it because it's just too expensive,” said Jonny Girson, owner of the Learning Tree.
Just like Brookside Toy and Science, The Learning Tree says holiday sales account for 40% of their annual sales.
A recent report conducted by Goldman Sachs surveyed a variety of business owners, compared to last year, more than 52% of small business owners say their profitability has not met expectations, even though 79% have increased prices compared to last year. The same survey claims 84% of businesses surveyed believe bigger retailers have a competitive advantage this holiday season due to their ability to better withstand inflationary pressures and offer lower prices. Many big box retailers have a larger margin and can buy more toys at a higher price compared to smaller stores.
"Pricing now is difficult, we've been buying toys for 27 years we're really good at buying the right toys, and sometimes they fall out of what we think is valuable, and we don't want to sell things that are overpriced, so we have to be much more discriminating on what we order and what we bring in,” said Girson.
However, despite these challenges both stores are confident they will weather out the storm.
The Learning Tree says customers are able to get a unique experience compared to other stores since some of their employees are current and former educators. Brookside Science also offers customers a variety of expertise and both shops offer customers gift wrapping free of charge.
Customers say they’ve noticed the increase in prices, but the experience they get is worth paying more.
“Seeing what the small business owners have had to go through it's been hard on everyone, and you add inflation on top of that and it's been cruel, and I like to see places like this stay open,” said Dianne Dennis, shopper at the Learning Tree.