Oct 2, 2007

Toy Retailers Encouraged About HolidaysBy Anne D'InnocenzioForbes.com

Toy sellers’ fears of a widespread boycott of Chinese-made toys have not taken hold so far, despite the recall of more than 20 million playthings made there. Merchants are reporting an improvement in business, including strong early sales of certain key holiday items.

Still, shoppers’ concerns over safety are still high. And mounting financial concerns could force shoppers to pull back.

“Consumers are still confused,” said Ron Boire, president of Toys “R” Us Inc.’s North American division, noting that there are some parents still concerned about where products are made. But he is not seeing “a sea change.”

Ed Schmults, chief executive of FAO Schwarz, agreed, noting that there’s no “abandonment of Chinese-manufactured toys. A lot of people are looking … but we are not seeing a correlation between where toys are made and their sales.”

That’s a big relief for the nation’s merchants, since more than 80 percent of toys sold in the U.S. are made in China.

Still, consumers like Kristen Chase, 31, the mother of a 3-year-old girl and an 8-month-old boy, say they are being more cautious in selecting toys.

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