I think this is because big lots is coming out of that MARKDOWN market...they are now buying IN-LINE which is an industry term. They aren't going to hasbro 6 months after release and asking for "CLOSEOUTS" they are buying direct and finding they make probably better profit from selling toys that are considered IN-LINE like the other stores, at a slightly lower price. I bet they are taking a margin hit though. So while target may sell:
SUPER PONY A - COST $1.50 a unit
Target: $7.99 (this is a MARGIN or MARKUP of 81%)
Big Lots: $6.99 (this is a MARGIN or MARKUP of 79%)
As you can see big lots still profits but not as much as target.
(This is a very crude example but I hope it makes sense)
^ That is a a lot of sales minutia sorry I'm in sales and work for an online shoe retailer and VERY little of what we sell is considered "IN LINE" we are almost always 1 year behind EVERYONE with styles.