KB Toys cuts prices on more than 200 toys

KB Toys became the latest toy retailer to cut prices ahead of a likely slow holiday season.

The Pittsfield-based toy retailer, which is privately held, said more than 200 toy prices have been cut to $10 or less, including Crayola craft kits, NFL and MLB action figures, and some Fisher-Price preschool toys.

(At right is an image of a Mickey Coin Bank Clock Radio taken from KB's website. The text notes that the price has been slashed from $39.99 to $19.99.)

The news follows discount retailer Wal-Mart Stores Inc. announcement that it would cut the price of 10 popular toys to $10. Target Corp., meanwhile, said it will shop at competitors stores for toys during fall to ensure its prices are competitive, and added it offers popular toys for $10 or less.

Retailers are bracing for a difficult holiday season amid financial-market turmoil, rising food and gas prices, and prolonged housing market slump.

National Retail Federation, a trade group, predicts holiday sales overall will rise a meager 2.2 percent to $470.4 billion, the slowest growth since 2002.

However, analysts expect consumers to cut back on gifts for adults before they stop buying toys for children. (AP)