Shop Talk
Retailers, consumers and prices
Check Out Line: Parents back to buying toys
Check out strong quarterly results from Hasbro.
The No. 2 toymaker behind Mattel said quarterly net profit nearly tripled while revenue jumped 8.2 percent. The maker of Littlest Pet Shop said it got the biggest boost from girls and preschoolers, with sales jumping 16 percent and 18 percent respectively.
Some of the gain came from favorable currency exchange rates, but even excluding that factor, revenue was up 5 percent. Mattel also posted stronger-than-expected quarterly results.
Sales of products for boys only rose 3 percent, but Hasbro is expecting more gains from toys tied to the releases of two movies — “Iron Man 2″ and “Toy Story 3″ — this year. Its lineup for 2012 is stronger, with “Stretch Armstrong,” “Battleship,” “The First Avenger: Captain America” and “Spider-Man 4″ movies all slated for release that year.
Also in the basket:
What’s hot in toyland this holiday season
As retailers gear up for the all-important holiday season, two industry veterans predicted what would be hot in toy land this year.Looking at the ‘hot toys” list from Jim Silver and Christopher Byrne of toy Web site TimetoPlayMag.com, it appears that even indulgent parents still don’t want to pay too much for a toy — with the exception of the Beatles Rock Band video game.That could put pressure on toy makers and retailers who have been cutting down on inventory and focusing on making and selling affordable toys to please consumers.The push may be vital, given the 2008 holiday season turned into one of the worst in nearly 40 years as the economic crisis bore down on shoppers.The complete “hot toys” list includes:Mattel’s Barbie Fashionistas dolls, Rocky the Robot truck, and the tween Dora, Crayola’s Crayon Town, Hasbro’s Candy Land Sweet Celebration game, a Nerf blaster gun and Transformers Constructicon Devastator battle vehicle, Cepia’s Zhu Zhu Pets hamsters, Bakugan 7-in-1 Maxus Helios playing cards and characters, MEGA brands’ Battle Strikers, Techno Source’s Printies, Spin Master’s Air Hogs Switchblade flyer, Jakks Pacific Eyeclops Night Vision Goggles and Girl Gourmet Sweet Candy Jewelry Factory, Lego’s Star Wars and the Beatles Rock Band video game.(Photo/Reuters)
Check Out Line: Holiday time in Toyland
Check out Toys R Us hiring 35,000 for the holiday season. The toy store giant said it would keep its U.S. store hiring plans at the same level as the last two years, even though industry watchers expect a relatively bleak winter.
Toys R Us, the New Jersey-based chain with nearly 70,000 permanent associates around the globe, is preparing for what it expects will be “another busy holiday shopping season.” Besides hiring about 35,000 for the season, current Toys R Us employees will also be given the chance to work extra hours, the company said.
So far, we haven’t seen any must-have toys, but the battle has clearly begun. Also on Wednesday, Walmart unveiled its plans to cut prices on toys once again this holiday season. The world’s largest retailer said it would have a $10 toys section in all U.S. stores today, offering more than 100 toys at that price.
Also in the basket:
Credit limits, self-discipline threaten holiday sales
As a young liberal American, I was always led to believe Walmart was the root of all evil. And yet, as times get tougher, it’s deals like this that will drive ridiculous sales come this holiday season. Is that really a bad thing? Also, where’s the video game discounts? That’s what kids are playing with these days, not toy trains.
I know where I want to buy that toy
If you are one of those people who comes across a toy store and buys something on impulse, you are probably in the minority.
Seven out of ten toy purchases were planned, and the top decision made by consumers was where to shop, according to a “Toy Purchase Decisions” report by market research firm NPD Group. The survey was conducted online with 2,344 participants.
Even the most indulgent parents have pared back on buying toys for their kids in the economic slump, making careful plans and seeking low prices on the items they buy.
Their thrift has resulted in tough sales conditions for toy makers and retailers alike, who are now resetting their strategy as the 2009 holiday season nears.
The survey showed that more than 75 percent of toy buyers knew which store they wanted to target while 90 percent of these people ended up buying at that same store, according to their plan.
And shoppers seem to be intent on sticking to their plan. Only 40 percent of these consumers said they would go to a different store if they didn’t find what they wanted at the original shop, according to the survey.
But unplanned purchases do happen and nearly two-thirds of consumers were influenced by factors such as specific toy being requested by a child, attractive packaging and product display. That is, of course, other than how important price is — two categories with the most unplanned purchases have the lowest average retail prices, the survey showed.
I agree that most consumers would rather shop on the same store rather than moving to another one, in this case it will also help them stick to their planned purchases. However some may also be tempted to spend on unplanned purchases like items that goes on sale.
Some retailers hope for Christmas magic
Santa’s not getting any rest this year.
After U.S. retailers posted the longest running decline in same-store sales in nearly a decade, Sears, Kmart and Toys R Us announced Christmas-themed sales for the month of July. While actual sale dates and locations vary among the three chains, the event has drawn a lot of attention from news media, which had the once-in-a-year joy of headlining a story with “Christmas in July.”
Not to be outdone, Disney has sent a train to 36 states around the country to promote its new animated film “A Christmas Carol,” slated for release this November. Yes, November.
The re-purposed Amtrak train is filled to the brim with Disney Christmas items, the latest in cinematic 3D audio and video equipment, a lot of HP computers, and even artifacts on loan from the Charles Dickens Museum. Oh, and it has a picture of Ebeneezer Scrooge on the front.
Whether any of these campaigns will work is anyone’s guess. But for now, at least, it gives us all a chance to laugh and play and maybe even listen to some Bing Crosby records.
I fear the worst for the Christmas sales, many consumers may have spent the little financial reserves they had before the holiday season starts.
Beanie Baby maker tries again with presidential pooch
If at first you don’t succeed, try, try again.
After pulling “Marvelous Malia” and “Sweet Sasha” Beanie Baby dolls inspired by President Barack Obama’s daughters due to a complaint from First Lady Michelle Obama, toymaker Ty is selling a new plush toy inspired by the nation’s First Puppy — Bo.
Ty said its $4.99 Bo toy debuted on April 16 and sold out within hours of hitting store shelves. A portion of the sale proeeds will go to support animal shelters, the company said. Bo toys already are on auction on eBay, where one seller is seeking $2,050 for a set of “authenticated” Sasha and Malia Beanie Baby dolls. You can find other Beanie Baby retailers here.
The Obama’s search for a puppy entranced the nation and was one of Washington, D.C.’s most closely guarded secrets.
Bo, a 6-month-old Portuguese Water Dog, beame an instant, international celebrity when the family introduced him to the world this week.
LeapFrog CEO’s mea culpa
Since U.S. President Barack Obama has begun owning up to his mistakes, the top dogs at some U.S. companies are giving mea culpas a try.
Take LeapFrog Enterprises’ Chief Executive Jeff Katz, for example.
In an interview with Reuters, Katz admitted that the toymaker had not been fast enough or deep enough with its discounts in the fourth quarter, which included the holiday sales season. The result? LeapFrog posted a 24-percent drop in quarterly sales and a wider loss for the period.
“That was really a miscall that we didn’t appreciate,” Katz said, adding that the company should have recognized early on, close to October, that consumers would only buy items that were heavily discounted.
Katz said the extremely frugal nature of shoppers had blown a hole through the theory that parents will hesitate to cut back on toys for children, and that the toy sector was resilient to economic downturns such as the current one.
“The great wisdom of the toy industry has certainly failed me this year,” said Katz.
Parents were also starting to recycle toys by handing down certain ones from older children to younger ones, he said.
Due to the global slowdown (recession) people are now eager to buy products that have high discount on them. I am sure that the recession will soon come to an end within 2 years as there are lot of measures taken. Obama becoming the President of America is really a good thing as Obama has lot of plans for the future economy of America.
Check Out Line: Maybe Mattel should try “Cry-For-Me Elmo”
Check out the Island of Misfit Toy Earnings. Mattel bumped along like a train with square wheels in the fourth quarter, posting a 46 percent drop in earnings for the quarter that includes the key holiday selling season. Sales fell 11 percent, a particularly bad sign given the idea that parents would sacrifice shopping for themselves in order to buy toys for their children during the holidays. Granted, part of the sales decline was due to the rising dollar, which hurts the value of sales outside the United States. But U.S. sales also fell 6 percent. And Barbie is really sagging, with a 21 percent drop in sales. Maybe her age is showing. She does hit 50 this year. “Our business wasn’t immune from the deteriorating economic environment of 2008,” CEO Robert Eckert said in a statement. Rival toymaker Hasbro will report next week. But at least it has that Monopoly money to cover any shortfalls. Also in the basket: Bharti Wal-Mart picks name for cash-and-carry stores Tough times for luxury watches (WWD, subscription required)
(Photo: Reuters)
Check Out Line: Shoppers resist last-minute urges
Check Out low shopper turnout just before Christmas.
Only 38.7 percent of consumers in a survey were out for some last-minute holiday shopping in the weekend before Christmas — the smallest number in six years, according to the survey conducted by America’s Research Group and UBS.
Traffic was especially weak in the U.S. Northeast and Midwest, which were slammed by winter storms over the weekend. That kept scores of people at home, but those who did venture out seemed to opt for stores that had deep discounts going on. Wal-Mart Stores, the world’s largest retailer, attracted over two-thirds of consumers, the survey found.
Other results from the survey include:
* 68.5 percent of shoppers are 90 percent or more done with shopping this year, the highest level since 2002.
* A greater number of parents, at 74.8 percent, are finished buying children’s gifts. That’s the highest level since 2003.
*Gift cards as a category are down to 51.5 percent, the lowest level since 2005. Only 11.8 percent of parents said that they bought gift cards for their children this Christmas as there was no “must have” gift. In 2007, that number was 26.3 percent.
I have tightened my purse strings indefinitely. Dont want to spend on anything other than planned shopping.
Stacy.
An American Girl Christmas?
Los Angeles shoppers weren’t in much of a splurging mood, except when it came to buying dolls and doll clothes at American Girl. The Grove shopping center is home to one of six American Girl stores in the United States and parents said its dolls are on every girl’s wish list. Here’s what we captured on camera:
What a fab day out – looks like everyone was haivng fun.
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Resident Shop Talk Expert
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