Toys are facing their biggest price spike in years. Mom-and-pop toy stores tell us how they're getting by.

Toys across the United States are experiencing their most significant price spike in years, with mom-and-pop toy stores sharing their struggles with the rising costs. Sylvia Edwards Toy prices have increased by 8.3% since February due to various factors including tariffs, geopolitics, and supply chain issues. This price surge is not limited to smaller retailers; legacy toymakers like Hasbro and Mattel are also facing higher costs from tariffs, fuel prices, and supply chain problems.

Clever Monsters, a toy store in New York City, co-owner Daniel Orlov has to recalculate prices order by order, sometimes cutting into his own profits to keep them affordable for customers. He has had to open up credit lines and take loans, as small businesses do not have the financial flexibility to navigate these challenges. Helen Dean, owner of Toy Safari in California, has seen her usual 7-8% profit margin drop to around 5% in the past year, forcing her to cut her own salary and avoid hiring extra help.

These issues are not exclusive to small local stores; major toy manufacturers are also grappling with the impacts of tariffs and inflation. Their gross margins have been under pressure due to these rising costs, and some have received relief through tariff refunds. Despite these challenges, viral toys like NeeDohs, fueled by social media platforms like TikTok, have helped maintain consumer interest and foot traffic in these stores.