Executive Summary

• While brick-and-mortar stores remain the main channel where consumers go to buy toys, online retailing has doubled its mind share compared with five years ago: 14.7% of consumers say they go online to purchase toys versus 7.3% five years ago.
• Amazon has capitalized on the rising popularity of shopping for toys online: over 14% of parents shop most often at Amazon for toys. The retailer has gained shared at the expense of Walmart and Target, while Toys “R” Us has managed to remain differentiated.
• Both Amazon and Walmart appeal to price-sensitive customers, however, according to consumers, Amazon offers better selection and service, which is how the retailer is winning the battle in the toys segment.