Buckhead toy store sees record holiday sales despite tariff price hikes

Local toy stores see tariff effects around holiday shopping

Local toy stores say sales are still strong this holiday season, but they are seeing effects from tariffs. 

ATLANTA - Kazoo Toys in Buckhead was a whirlwind of activity this Christmas Eve as shoppers made their final rounds to check off holiday lists.

What they're saying:

Despite toy prices climbing due to recent tariffs, items have been flying off the shelves. Whitney Novak, who co-owns the store with her husband, Joe, noted that while the economic climate has shifted, the spirit of giving remains steady.

"It's been an interesting year, to say the least," Novak said.

According to Novak, tariffs have pushed toy prices up anywhere from 5% to 25%, depending on the item. However, the higher price tags haven’t kept customers away; sales at the Buckhead location are actually up compared to last year.

"It's not super surprising that we're up. I think that people in general are going to try to buy things for their kids," Novak said. "They're going to spoil them to a point. And, you know, it might be one big item rather than a couple small ones."

The Novaks explained that while they try to be fair to customers to avoid overcharging, their options are limited. Approximately 75% to 80% of the toys they sell are imported from overseas. To mitigate the impact, the couple stocked up on inventory before the tariffs took effect earlier this year.

Still, the price increases are noticeable at the register.

"Sometimes we’ll get an ‘oh wow that’s expensive’ or something and so we constantly tell them, you know, tariffs raise things," Novak said. "And so that's just kind of what it is. It's not us. It's the world that we live in today."

Big picture view:

The trend at Kazoo Toys reflects a broader national pattern. The National Retail Federation estimates that holiday sales could top $1 trillion this year. However, consumers are feeling the pinch across many categories; the Century Foundation reports that popular holiday gifts beyond just toys have climbed 26% in price.

Novak has noticed a slight shift in how people manage their holiday budgets.

"We've seen a few more of the cautious returns where people bring it back, you know, realizing that they had a little bit too much or something like that," Novak said. "In the past, I think people might have just not worried about it. And this year, maybe they're a little bit more cost-conscious overall of what they're spending."

Despite the challenges facing the toy industry, Novak said she remains grateful that shoppers are choosing to support local shops over online giants.

"I think there's still a movement to really support the local business because, while it's more convenient maybe to buy online, you don't always know what you're going to get," Novak said. "It shows up in a box and you realize that it's half the size that you thought it was or something. When you can go in a store and really touch and feel what you're buying, you know exactly what it is."