WACO, Texas (KXXV) — As holiday shopping ramps up, many small toy stores are bracing for higher costs tied to tariffs. At Action Jack’s Toys and Collectibles in Waco, shelves are filled for the season, but keeping them stocked is becoming more expensive.
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“Historically, toy sales are at their peak in November, December. Toy stores make 80% of their profit in those two months. That's the biggest revenue season of the year,” owner Justin Jack said. “The last several years have kind of been up and down.”
Jack said most toys are made overseas, which leaves smaller retailers vulnerable to added costs.
“Most toys are made overseas, and that creates a problem for us, because with tariffs, that's an additional cost that has to be absorbed somewhere,” he said.
“One of our main distributors in Japan has a 20% surcharge that is now being impacted as of September 1st, which means a $5,000 minimum order now costs us $6,000. So how do you offset that expense?”
According to the U.S. Bureau of Labor Statistics, toy prices rose 1.8% after President Trump's tariff enforcement.
Jack said he is trying to absorb as many of those costs as possible, hoping not to pass them on to families ahead of the holidays.
“Any scenario, it's a process of diminishing returns ultimately. Stores like me lose out. Customers have to pay more money and nobody really wins in the end,” he said. “Toys are a luxury item. Not everybody needs toys, but nobody wants to be that family at Christmas that doesn't have money for toys for their kids under the tree.”
As Christmas approaches, prices are expected to rise further. Jack encourages shoppers to plan ahead.
“Over time, every day, if you're losing $4 or $5 a day, at the end of the month, that's $120. That's maybe part of your car payment. Maybe that's groceries, maybe that's daycare, maybe that's diapers and formula. Something has to give,” he said.
