Oct 21, 2007

Recent recalls raise concerns about holiday buyingBy Joan VerdonNorthJersey.com

Addi Belle Rudman of Ramsey celebrated her first birthday a week ago. Among the gifts she received were a clock, a beanbag chair and other furniture for her playroom and bedroom; books; and gift certificates for clothing.

Two of the toys she got were whisked out of sight by her mother: a Little People toy, one of the brands hit by recalls, and a Dora the Explorer toy, because her mother has vowed never again to let a Dora toy in the house. “Dora the Explorer was the most recalled character,” said Brigitte Rudman. “I’m just not risking it.”

If Addi’s gifts are any indication, traditional toy sellers have reason to worry this holiday season. Recent recalls may cause consumers to change their toy-buying habits as the toy industry heads into its most important sales time. Last year, merchants rang up $22.3 billion in toy sales, according to Port Washington, N.Y.-based market research firm NPD Group Inc. Almost half, or $10.6 billion, came from fourth-quarter holiday sales.

Yet, the reaction to the recalls could present an opportunity for some New Jersey toy companies and retailers. Toys “R” Us Inc. in Wayne is hoping parents concerned about safety will shop its stores and avoid Wal-Mart Stores Inc. Local merchants such as Woodcliff Lake’s Jennifer Viola Laddy are hoping customers will turn to neighborhood stores and avoid the mass-market retailers. And two companies that sell a lot of teddy bears and other stuffed animals, Russ Berrie and Co. in Oakland and Edison-based Gund, could see their sales soar if there is a backlash against plastic and painted toys.

Toy sellers and manufacturers also will have to deal with the grinches threatening to steal sales from all retailers in November and December: high oil prices, an unpredictable stock market and the credit crunch.

Those factors have C. Britt Beemer predicting that “it’s going to be a weird Christmas.” Beemer, whose South Carolina-based company, America’s Research Group, conducts weekly shopper surveys, says “we could very well have a Christmas where sales don’t beat last year.” Economic concerns, recall worries and growing use of gift cards — which don’t get counted until they are cashed in — could depress sales results in December, he said.

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