Toy Retailers Say Business Isn't Fun and Games

Despite heavy advertising efforts from Toys R Us and other toy retail chains, Wal Mart is in the top spot as the number one toy seller. Toy retailers are struggling as the holidays approach.

FAO Schwarz may close its doors, KB Toys has seen a decrease in sales and Toys R Us lost $38 million in the third quarter alone.

But they're not ready to give into the discount stores and consumer electronic chains just yet. Toys R Us has entered a partnership with certain grocery stores owned by Ahold. KB Toys will join forces with Sears during the holiday season.

Partnering isn't just for big businesses. From corporate giants to the local five and dime, partnering is a low-cost, highly effective advertising medium.