Toy Prices On The Rise

Written By: Jack Castle

September 7th, 2011

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We have discovered a dramatic increase in toy prices at one Los Angeles area Target store. What is the real story here? Is this a glimpse of things to come? Or is this just a by product of the high cost of doing business in LA?

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As you will see, the retail price has increased on several different collectible toy lines. While this move is hard on collectors, its even more tough on families and children. I was actually very shocked to see a price increase like this considering the poor state of the local economy.

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There is actually a bigger mystery behind this price hike. We checked prices at several other Target stores in Los Angeles and across the United States. None of them had prices this high. The Target store in question is located in West Hollywood California, on the corner of La Brea Avenue and Santa Monica Blvd. This location is often referred to as "WeHo Target" by the locals. [Location]

The store is located in the area known as the "West Hollywood Gateway." Years ago this area was plagued with drugs, crime and prostitution. Now urban redevelopment has brought a massive increase in new construction, along with a major increase in the cost of living for the surrounding area. Unfortunately, although the area has improved in recent years, many of the problems from the old neighborhood remain.

In our quest for the truth we checked the neighboring retail stores in the same complex, including Best Buy and GameStop. We then compared their prices with other locations across the city. Sure enough, the prices for the other stores in the West Hollywood Gateway were the same as they were in other locations across the city.

So it appears that Target may be engaged in a dirty little trick called "price bumping." Price bumping is a tactic where you increase prices at stores located in upscale neighborhoods, feeling that the locals can afford to pay more than everyone else. Well someone should tell the people who run the West Hollywood Target that this neighborhood is still far from being upscale. And in fact, some of the people we spoke to about this problem claimed the price increase is not directed at the wealthy, but rather are instead being aimed at the poor and lower income families, many of whom still live in the surrounding areas.

Simply put, if you raise prices the lower income families will be forced to shop elsewhere. Its a form of economic gentrification. Now that's a very serious accusation in my point of view, if it is true. Although I am not entirely convinced, many of the residents in the area strongly believe this is the truth behind the price hikes. Sadly, this tactic makes a lot of sense from the point of view of a greedy business owner, especially when you consider the troubled history of the surrounding area. What was once a bad neighborhood is now being redeveloped into a trendy hot spot. This is a great way to force a demographic shift in clientele.

Unfortunately for the locals that frequent this store we discovered that prices are higher across every department. From Hot Wheels Cars to Jell-O desert mix. Everything is more expensive at West Hollywood Target. Again, is this a by product of the high cost of doing business in LA? Or is it a dastardly part of the gentrification process going on in the local area? A price hike like this may not feel like much to the average joe, but to collectors and to those living on a fixed budget, kids with a meager allowance, and many of the low income families living in this neighborhood, they are a very big deal.