Daddy was being his normal self, teasing the children. He was trying to convince Grace and Annabelle they were not born, but instead were purchased them from the store. Annabelle seemed to be in on the joke, playing along. Grace, however, was not amused by this one bit. It took a bit of coaxing to get her to play along.
And then Daddy took it one step too far...
GRACE: So, what store did I come from then?
DADDY: WalMart. You came from WalMart and Annabelle came from Target.
GRACE: WHAT? WALMART??? No way. No, NOT WalMart. I would definitely have come from Target.