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Retailers, consumers and prices

November 19th, 2008

Check Out Line: Hannah Montana rising

Posted by: Brad Dorfman

Check out the marketing power of Hannah Montana.
 
Watch out Barbie. Hannah is clawing her way up behind you. At least as far as girl’s toys are concerned.
 
According the National Retail Federation’s 2008 top toy survey, Hannah Montana has moved up four spots to the number two position for girls’ in the Top Toys survey, trailing on Mattel’s Barbie.
 
Toys based on the Disney character, who is played by Miley Cyrus, knocked those scrappy Bratz dolls out of the number two spot. Bratz fell all the way to number four behind just-plain-old, everyday, no-specific-name dolls.
 
As far as boys are concerned, the list is similar to last year, with video games in general topping the survey and the Nintendo Wii in the number two spot. Legos, cars and Transformers round out the top five.
 
While the weak economy is leading to expectations of a dismal holiday shopping season, parents could find some bargains in toys.
 
“The good news for parents is that many retailers are featuring toys as loss leaders this year, heavily discounting and promoting these items to bring shoppers into stores,” NRF President and CEO Tracy Mullin said.
 
Also in the basket:
 
CPI drops at record pace in October
 
BJ’s Wholesale quarterly profit jumps
 
Why Doesn’t Costco accept food stamps? (N.Y. Times City Room)

(Reuters photo)

October 20th, 2008

Less at the pump means more in stores, Hasbro CEO says

Posted by: Aarthi Sivaraman

biscuit.jpgConsumers 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)

October 7th, 2008

Bratz and Bakugan make latest hot toy list

Posted by: Aarthi Sivaraman

bratzandbarbie.jpgIf 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)

September 25th, 2008

Check Out Line: Pink iPod helps lead hot toy parade

Posted by: Aarthi Sivaraman

Check Out how the iPod finally made it into the Toys “R” Us hot toys list for the toysrus.jpgholidays.

This holiday season, Apple’s pink 8 GB iPod nano, Nintendo’s Wii Fit and the Fisher-Price Sesame Street Elmo Live toy are topping the list of most sought-after toys.

Even though iPods have topped holiday wish lists for years, Toys “R” Us said this is the first time it has included the portable media player on its hot toys list. Late perhaps, but a company spokesman said in an e-mail that the iPod nano in pink makes it “doubly hot” and that Toys “R” Us thinks the iPod appeal is starting to reach kids.

The main question though is, whether it will come loaded with Miley Cyrus tunes?

To avoid disappointing shoppers hungry for the popular Nintendo Wii Fit, which gives gamers some exercise, Toys “R” Us said it expects to get regular shipments of it.

Other top toy picks include EyeClops Night Vision Infrared Stealth Goggles from Jakks Pacific, Furreal Friends Biscuit, My Lovin’ Pup from Hasbro and the Pink Tag Reading System from LeapFrog.

The Toys “R” Us list comes as the holiday sales season is expected to be gloomy for both consumers and retailers.

Also in the basket:

Rite Aid Q2 loss widens; sees bigger FY09 loss

Holiday sales lose luster for inundated consumers

Longs says FTC is probing Walgreen bid 

Pilgrim’s Pride loss may put it in covenant default

(Photo: Reuters)