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 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

Danone sells Wahaha venture stake, builds war chest

Dylan album goes for early sales to Citi customers

Go shopping at Italian supermarket to win a job

(Reuters photo)

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.

(Photo/Reuters)

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.

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.

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.

So what does a small-cap company do when times are tough?

LeapFrog seems to have its plan chalked out: price products attractively, cut costs where possible and position itself for better times with new products.

(Photo/ Reuters)

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 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.

Also in the basket:

Emerging market consumers hurting with rest of the world

Wine: Vintage ‘08? A mixed case of economy and ecology

Wal-Mart Chile bid for D&S seen successful

A not-so-jolly season for eBay - WSJ

(Photo/Reuters)

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:

Take as long as you need to recover from that big Thanksgiving meal this year.

This Black Friday, Toys “R” Us is holding an additional hour of door-buster deals  as it tries to get a bigger bite of sales this holiday season.

The specialty toy retailer is discounting more than 150 items this year, compared to the 101 that it announced a year ago. Shoppers can snap up toys and games at those special prices from 5 a.m. to 1 p.m. on Nov. 28, known in the retail industry as Black Friday, the traditional kick-off to the holiday shopping season. Last year, the door-buster deals were finished by noon.

Toys “R” Us is waging price wars against retailers like Wal-Mart Stores Inc, the world’s largest retailer, known for its low prices. Wal-Mart has already unleashed a round of price cuts on toys in October when it offered 10 popular toys for $10 each, and plans to cut prices every week until Christmas as it tries to win over cash-strapped consumers.

While a massive toy recall played on consumers’ minds last year, the state of the global economy has easily overtaken those concerns this holiday season. Consumers are expected to continue shopping carefully and  hunt for bargains, and Toys “R” Us is gearing up to meet those demands. The company is allowing consumers to peek at 50 unadvertised door-buster deals online beginning Nov. 26 at midnight. Last year it posted 40 mystery deals online. 

Toys “R” Us Black Friday door-buster deals this year include:

* Free Play Station 2 Deal – 6 FREE Games, FREE “21″ DVD and Free Play Station 2  DVD Remote with the purchase of the Play Station 2 System

*Free $50 Toys“R”Us Gift Card with the purchase of a Black 16GB iPod nano

*Free Nintendo DS accessory with the purchase of Nintendo DS Brain Age Bundle or Nintendo Super Mario Bros. Bundle DS

*More than 80 percent off Xbox 360 Wired Guitar Hero Game Controller

*60 percent off TOYMAX EyeClops from Jakks Pacific

* 60 percent off Disney High School Musical 2 Figures 3-Pack

* More than 50 percent off Littlest Pet Shop VIP Plush Pets from Hasbro

*Up to 50 percent off Guitar Hero III: Legends of Rock Bundle for Wii, PS3 and Xbox 360

*$60 off iHome Portable iPod Docking Station (iPod sold separately)

* $50 off Sony 7.2MP Pink Cybershot Digital Camera

The company will also have some deals through the Thanksgiving weekend and some others for the following “Cyber Monday.”

Let the toy wars begin.

(Photo/Reuters)