Pokémon, sports trading card boom boosts Target, Walmart ahead of holiday season

The trading card market is experiencing a significant resurgence, with major retailers like Target and Walmart reporting substantial sales growth, driven by strategic and non-strategic cards, including Pokémon and sports collectibles. Target's trading card sales are up nearly 70% year-to-date, projected to exceed $1 billion annually, while Walmart Marketplace saw a 200% jump in sales. This boom, fueled by Millennials and Gen Z, is attributed to nostalgia, community, and the perception of cards as an alternative investment, with Pokémon cards demonstrating significant cumulative returns. Retailers are leveraging the category's consistent, year-round demand and expanding assortments, anticipating further growth from segments like the WNBA and upcoming FIFA World Cup.

Analysis

The trading card market is experiencing a significant resurgence, with strategic card sales (excluding sports) up 103% year-to-date through August, and non-strategic cards up 48%. Major retailers are capitalizing on this trend; Target (TGT) reported a nearly 70% year-to-date increase in trading card sales, projecting annual revenue from the category to exceed $1 billion. Walmart Marketplace (WMT) also saw a 200% jump in sales from February 2024 to June 2025, driven by strong demand from Millennials and Gen Z.

This growth is fueled by nostalgia, community, and the perception of cards as alternative investments, exemplified by Pokémon cards delivering a 3,821% cumulative return since 2004. While 19% of adults purchase cards for themselves, indicating less traditional holiday gifting, the category benefits from consistent, year-round demand, making it attractive to retailers seeking to offset seasonal risks. Pokémon remains the top performer, surpassing $1 billion in sales last year.

Retailers like Target are actively expanding assortments, increasing exclusive drops, and enhancing in-store prominence to sustain momentum. Future growth is anticipated from diversifying the consumer base, with WNBA cards emerging as a fast-growing segment among young girls and the 2026 FIFA World Cup expected to boost soccer card popularity. This strategic focus aims to build long-term category relevance beyond current trends.

Key Decisions for Investors

• Investors with holdings in major retailers like Target (TGT) and Walmart (WMT) should recognize the trading card segment as a significant, consistent revenue driver, contributing to overall consumer goods performance.
• Explore the potential for alternative investments within the trading card market, particularly in established categories like Pokémon, given its historical returns and perceived stability compared to more volatile sports cards.
• Monitor the expansion into new demographics and sports (e.g., WNBA, FIFA World Cup) as these initiatives by retailers and card manufacturers could unlock further growth and broaden the market's appeal beyond traditional collectors.