Check out more bad news for retailers headed into the holiday season.

On Friday, fresh data showed the U.S. economy shed 240,000 jobs in October, worse than the 200,000 decline that was forecast. The Labor Department said the national unemployment rate shot up to 6.5 percent from 6.1 percent in September — the highest since March 1994.

That disappointing report came a day after U.S. retail chains reported their worst October sales results in 35 years.

“October was a disaster of epic proportions for most of the retailing community, as continued economic negatives resulted in a ’shopping strike’ by consumers and led to material misses by a number of key players and a decidedly more cautious outlook from virtually every player in the apparel sector,” wrote Eric Beder, a retail analyst for Brean Murray, Carret & Co.

Meanwhile, a new Consumer Reports holiday shopping poll found that 76 percent of Americans plan to cut back on spending on holiday expenses like gifts, travel, entertaining and decorations. Among the holiday spending cutbacks, 59 percent said they will be giving fewer gifts, and nearly half said they will be cutting their travel plans.

The weak reports are all darkening the outlook for holiday sales, which were never expected to be great. Now consumers can expect retailers to roll out a plethora of deals and discounts to grab whatever portion of a shopper’s wallet they can get this holiday.

On Friday, Wal-Mart’s Sams’ Club said that starting Nov. 14, non-members who sign up in any location nationwide before Nov. 26 will receive a $10 Sam’s Club gift card. The gift card is good for purchases in its clubs starting Nov. 28, the day after Thanksgiving, when Sam’s Club will open at 5 a.m. and provide a free breakfast through 8 a.m. 

Also in the basket:

General Mills has no issues accessing finance -CEO

Mattel cuts about 1,000 jobs citing economy

(Photo: Reuters)

Consumers rejoicing at the gas pump in recent days may mean good news for retailers — at least that’s what the CEO for toy maker Hasbro is thinking.

In an interview after Hasbro — known for its Monopoly board game and My Little Pony toys — posted a third-quarter profit that beat Wall Street expectations, CEO Brian Goldner said one heartening outcome of the financial crisis was that crude oil prices have fallen in recent weeks, which has translated into lower prices at the pumps for consumers.

That means shoppers could have some extra cash in hand to buy, say, Hasbro’s $180 Furreal Friends toy pup called Biscuit. If that seems like a lot of cash to spend on a toy, Hasbro says it also has several items on offer for less than $20.

Goldner said sales of board games were up 7 percent in the quarter. Demand for titles like Scrabble, Trivial Pursuit, and Twister was strong as consumers cut down on road trips or vacations and looked for ways to entertain the whole family at home.

The company expects board games to do well in the holidays.

(Photo: Reuters)

A singing and dancing Elmo Live said hello to the world on Monday at the Toys “R” Us store in Times Square.

Elmo Live is Fisher-Price’s latest version of the Sesame Street fixture, after Tickle Me Elmo in 1996 and TMX Elmo in 2006. Fisher-Price is a unit of top U.S. toymaker Mattel Inc.

Though consumers are expected to remain squeezed for cash this holiday season, toy executives have said that parents will manage to spend for their kids even if it means cutting back on gifts for themselves. The National Retail Federation has predicted U.S. holiday sales in November and December will grow at 2.2 percent — the slowest pace in six years.

Other tracking firms say holiday spending could emerge the weakest in about a decade.

On Monday, Elmo Live made its case to shoppers as to why cash-strapped parents might want to buy their kids their very own Muppet this holiday season – it sang, danced, told jokes and stories and laughed at various stages of a nearly half-hour presentation. The toy can even wave its arms and cross its legs.  

Toys “R” Us is selling the $59.99 toy exclusively in its store today, ahead of the U.S. launch on Oct. 14.

Not many parents seemed perturbed by its price.

“With things costing what they do, I think it is fair,” said Asha Jefferson, mother of nearly 3-year-old Ava. Jefferson said she never exchanges gifts with her husband, so they do not hesitate to buy gifts for their daughter.

But a little after 10 a.m., there did not seem to be any huge rush to snap up the latest Elmo — cash registers were relatively free and parents sauntered around the store with no particular hurry to grab an Elmo.

Things will pick up closer to Thanksgiving, maybe?

(Photo\Reuters)

If the holiday season is around the corner (or even a little farther away), then it is that time of the year again — major toy retailers, childrens’ magazines and guides announce “hot” lists, predicting which toys and games will likely fly off store shelves during the holiday shopping period.

According to Toy Wishes magazine, girls who are 6 years old or older are likely to go after the Bratz “Girls Really Rock” line of dolls this time around.

Top U.S. toy maker Mattel and smaller, privately held MGA Entertainment have been locked in a legal battle over the Bratz dolls. The chic, snazzily dressed dolls started stealing market share from Mattel’s iconic and more clean-cut Barbie since the Bratz were introduced in 2001. While it is still undecided as to who has the right to make the dolls. Mattel most recently said that it has filed a motion to stop MGA from making or selling Bratz. That could spell bad news for MGA, given toy companies make a lion’s share of their revenue during the holiday season.

Also on the Toy Wishes list: Spin Master’s action-figure warriors Bakugan, Playskool’s dinosaur “Kota the Triceratops,” and Crayola’s Glow Station. Interestingly, Crayola spokeswoman Stacy Gabrielle said at a Toy Wishes event in New York that Crayola is trying to attract thrifty parents with lower-priced items this holiday season. The Glow Station can be purchased for $29.99. 

Just as well. With high prices for fuel and food, the credit crunch, a prolonged housing slump and the financial meltdown, how many parents will readily shell out $179.99 for a toy dog (Hasbro’s Furreal Friends Biscuit, My Lovin’ Pup) or $189.99 for a 15-string Cherry Harp?

Time will tell.

(Photo: Reuters)

Check Out more gloomy forecasts for the holiday sales season.

With mall traffic likely weak for the remainder of the year and uncertainty lingering in the financial markets, analysts at CL King say that even with inventory reductions across the board they don’t yet see a light at the end of the tunnel.

“We believe the macro situation has fallen further with worse-than-anticipated negative data points on employment, housing, car sales, investment portfolios, etc.,” CL King wrote in an analyst note.

“The consumer has been cut back with regard to credit availability, as have small businesses. The extreme volatility in financial markets and the subsequent barrage of negative news headlines is probably causing further mall traffic weakness … Such mall traffic weakness is not likely to improve in October, despite very favorable weather comparisons.”

A Reuters/Zogby poll says nearly six times as many shoppers plan to spend the same or less than last year than those who plan to spend more.

Also in the basket:

Family Dollar profit tops Wall St view, shares up (Reuters)

CVS takes issue with Longs shareholder letter (Reuters)

Anheuser-Busch expects 3rd-qtr income up (Reuters)

(Photo/Reuters)