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Toy Land
Toys cornerstone of profitable holiday season for retailers
by Jennifer Hall
Sunday, November 9, 2008
This year's most popular toy, the Live! Elmo dolls, are stocked on the shelves at Target at the Shoppes at North Village.

Photo by Zachary Siebert / St. Joseph News-Press / Purchase this photo

This year's most popular toy, the Live! Elmo dolls, are stocked on the shelves at Target at the Shoppes at North Village.

Retailers and Shoppers alike are trying to get their hands on the hottest toys before they’re gone. Toy makers began creating the buzz in late summer for products yet to hit the shelves.

“Toys at Christmas are like candy at Halloween,” said April McLaughlin. “You gotta have 'em.”

Ms. McLaughlin makes it a point to get her son, Jayden Phillips, his favorite toys for Christmas. She said that the sight of his face lighting up on Christmas morning is priceless for her.

“I think that’s probably what most parents get out of it,” she said. “We just want to make them happy. Toys are something that can make any kid happy.”

Jayden said that some of the toys on his list to Santa are anything Transformers, Spiderman and a new game for his Nintendo DS.

The Nintendo DS is popular again this year, although it was unveiled last year. The Toy Industry Association just released its list of hot toy trends and products for this Christmas season. Some familiar faces are in the mix, including Elmo Live, the newest version of interactive Elmo toys. Barbie, Cabbage Patch Dolls, Hot Wheels and Easy Bake Ovens are some others on the list.

Classic games are becoming a common trend, according to the association.

“Due to the nation’s tough economic conditions, there has been an increased interest in board games and nostalgic games, “ said Tiffany Guarnaccia with the association. “These types of toys have a lower price point and offer fun for all members of the family.”

Local businesses add toys and games to their shelves to attract customers during the holiday shopping season.

“The toys are going to be a huge focus for us,” said Martha Swaney with Aldi grocery store. “Hopefully it will be an added convenience to our customers. We’re getting in those hot items at a discount price.”

The St. Joseph grocery store carries different toys and gift items each week. Lap tops and cameras cycle with the Hannah Montana guitars and action figures.

“They stay as long as supplies last,” Ms. Swaney said.

She said Aldi has seen an increase in traffic this year as customers are looking at new ways to stretch their grocery dollars.

“So, we do see offering the toys as an extension of savings,” Ms. Swaney said.

Hasbro, one of the largest toy creators in the world, raised prices due to rising costs from China. Prices for both Hasbro and fellow toy maker Mattel are expected to rise again in 2009, according to the association.

At Mattel, quarterly profit rose less than 1 percent and sales rose 6 percent. At Hasbro, profits fell nearly 15 percent while revenue rose 7 percent.

Big Lots doesn’t purchase its toys directly from the manufacturer but the store’s toy prices have gone up from years past, according to the store’s manager.

Customers are seeing a trend in pricing at both ends of the spectrum.

“Some of the bigger stores have a lot of the toys on sale way into December,” said Cathy Bradford

The St. Joseph woman said she spends a lot of her time bargain shopping and comparing prices.

“This holiday season, it’s no surprise that we’ve seen an increased focus on shoppers’ budgets and the economy,” said Reyne Rice, a toy trend specialist with the association. “But parents will often sacrifice other things before they give up toys for their children. And while price points differ for each family, the overall interest in top trends is consistent across the board. This year, there are hot products to fit every wallet.”

Business reporter Jennifer Hall can be reached at jennhall@npgco.com.

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