Walmart (WMT) slashed toy prices ahead of the holiday season in a bid to gain the edge on low-cost rival Target Corp. (TGT).

When the world's largest retailer learned that many of its toy prices were higher than Target's, Walmart revised prices downwards, The Wall Street Journal said.

The most expensive item customers can buy from Walmart's hot toy list is Big Foot the Monster, which walks, talks and burps for $84.88.

Walmart is also working to promote its toys through a 52-page circular in newspapers.

"We've expanded the selection of toys and widened the array of price rollbacks," said Laura Phillips, Walmart's senior vice president of toys and seasonal merchandise.

Still, the competition is stiff. Target is offering a 5% discount if you purchase with a Target credit or debit card, or a Target Visa card.

"It will still be a very competitive season for toys," said Craig Johnson, president of Customer Growth Partners, a retail and consumer consulting firm. "The reason you are seeing so much early discounting is that retailers are trying to get an early share of the market."