Major Retail Store Blames Squishmallows for ‘Disappointing’ Sales

How could something so adorable and so squishy create so many problems?

The CEO of a major discount retail chain is pointing fingers at Squishmallows while blaming the plush toys for lower-than-expected profits.

When Did Squishmallows Become Popular?

If you've somehow missed Squishmallows seeming being sold in every retail store, gas station and even supermarkets in the past few years, they are egg-shaped plush toys that depict various creatures.

The first Squishmallows arrived in 2017. Today, Jazwares, the company behind the popular toy, has pushed them out into more than 55 countries.

Jazwares boasts on its website that the Squishmallow was named Toy of the Year and Best Selling Toy in 2022.

"The brand's ongoing expansion and passionate fan base will continue to make Squishmallows a collectible phenomenon and evergreen lifestyle property," Jazwares says of one of its biggest successes in recent years.

But like Beanie Babies, Cabbage Patch Kids and any other must-have kids item in the past 40 years, Squishmallows will likely see interest fade among consumers. At least one CEO thinks the craze has already started to subside.

Squishmallows Blamed For Lack Of Business

It hasn't been an easy year for discount retail stores.

Dollar General ping ponged between having self-checkouts to keep labor costs down and reverting back to having cashiers. Family Dollar stores have been closing across the country as parent company Dollar Tree decides what to do with the brand.

Now, Five Below is claiming its sales haven't been as good as expected for 2024.

The Street looked at sales numbers for Five Below and found that while net sales increased year over year, store sales went down.

The problem according to Five Below CEO Joel Anderson? Squishmallows.

"I think the one change that's happened is it's proven harder for us to lap some of the big trends from last year, namely Squishmallows," The Street reported Anderson saying during a recent earnings call.

Some of that, Anderson says, could be contributed to consumers limiting spending.

Sorry Squishmallows, but a family has to eat.