NEW YORK, Nov. 17, 2007

Toy Retailers Hold Breath As Holidays Near

Months Of Recalls And A Sagging Economy Have Consumers Nervous About Purchasing Toys

  • Toys are displayed in the front window of Second Childhood Toys in Hasting, Minn., Nov. 15, 2007. Store owner Barb Hollenbeck spent 11 years competing with big box retailers like Target, based in nearby Minneapolis, and said now her colleagues can show their knowledge and give parents more confidence in their purchases.

    Toys are displayed in the front window of Second Childhood Toys in Hasting, Minn., Nov. 15, 2007. Store owner Barb Hollenbeck spent 11 years competing with big box retailers like Target, based in nearby Minneapolis, and said now her colleagues can show their knowledge and give parents more confidence in their purchases.  (AP Photo/A.J. Olmscheid)

  • Interactive Toying With Danger

    A look at some of the latest toy recalls and tips for playing it safe

(AP)  Lead on toys was bad enough, but last week's recall of a toy tainted with a date rape drug threatens to turn into a lump of coal for toy retailers just as the key holiday selling season gets started.

The recall of Aqua Dots comes just as the industry was starting to see shoppers return to toy stores after summer's high-profile recalls of more than 21 million Chinese-made toys with high levels of lead or dangerous magnets.

Aqua Dots, distributed by Spin Master Ltd. in the U.S. but made in China, was on many retailers' hot toy lists, and there are very few substitutes, retail executives say.

Reports of children knocked unconscious after swallowing the tiny colorful beads set off a whole new level of worry among parents.

The good news for shoppers is that they're being bombarded with free shipping offers and fat discounts as rivals like Wal-Mart Stores Inc. and Toys "R" Us try to out do each other and draw reticent consumers. Most of the discounting had been planned, but at least one toy retailer - eToys.com - added a free shipping offer after a disappointing October.

The Aqua Dot recall is "scarier than all the others," said Stacey Ryan, of New Providence, N.J., who planned to buy Aqua Dots for her three-year-old daughter Shannon. The summer recalls had already made her cautious about buying toys for Shannon and her two-year-old sister Bridget. But she reasoned, what could be worse than them swallowing the Aqua Dots? Little did she know that the beads were coated with a toxic chemical that metabolizes into gamma hydroxy butyrate or GHB - the so-called date rape drug.

Now, Ryan is focusing on bigger toys like baby dolls and stuffed animals - items her children can't swallow. "If it looks like a piece of fruit or a snack, I just won't buy it," she said.

"I really don't understand how a toy like that can have something like that put into it," said Colleen Scanlan, from Sun Prairie, Wis., who is trying to find a replacement for Aqua Dots for her daughters, ages 5 and 8. "They've been asking for it for about a year, so that one will be a big disappointment."

While many toy merchants say so far shoppers largely have not been rejecting Chinese-made toys - which make up 80 percent of U.S. playthings - they are being choosier. A poll done last month by Harris Interactive showed that one-third of Americans say they will be buying fewer toys this holiday season due to safety concerns, and 45 percent said they will avoid buying toys made in China.

What effect the souring economy will have on sales is also still unclear. Consumers are wary, but even the most frugal parent will buy some children's toys come the holidays.

Target Corp. has said that its toy business has been "soft" this fall, while eToys.com's CEO Michael Wagner reported that October sales were weaker than expected. Amazon.com said it's been pleased with its toy business; many others declined to comment saying that the bulk of holiday sales is yet to come.

The industry is worried that parents' frugality could derail holiday sales, which showed a meager increase last year after several years of declines. Toy sales were up 0.2 percent last year, according to the NPD Group Inc., a research company based in Port Washington, N.Y.

Already, aggressive price cutting has begun. Wal-Mart kicked off in early October, at least a week earlier than a year ago. Over the Nov. 2-4 weekend, Wal-Mart, Toys "R" Us and K-B Toys Inc. wooed shoppers with weekend discounts and door buster specials similar to what they would offer on the day after Thanksgiving.

Such heavy discounting could depress sales even more, analysts say. BMO Capital Markets analyst Gerrick Johnson noted that he now expects toy sales to be down from a year ago; before the summer recalls he had estimated that toy sales would be slightly up.

The Aqua Dot recall opened old wounds, said Johnson.

"This could be the straw that breaks mom's back," he said.

As toy buying kicks into gear, there seem to be plenty of contradictions in spending patterns. While some small toy stores report a sales surge in naturally stained wooden blocks and eco-friendly stuffed animals, plenty of Chinese-made mass products are big hits, such as Fisher-Price's Smart Cycle and Jakks-Pacific EyeClops, a handheld device that magnifies objects.

Brands that suffered recalls - such as Mattel Inc.'s preschool brand Fisher-Price and RC2 Corp. - are rebounding, according to Toys "R" Us officials. They noted Fisher-Price has done better than other brands hurt by recalls.

Online specialty stores like Oompa.com and ebeanstalk.com that sell fancier, higher priced toys also report hefty sales increases from a year ago.

Sue Warfield, president of the American Specialty Toy Retailing Association, which represents about 500 stores, says her members, long battered by discounters, are bracing for a turnaround.

"One bright side is it's made people aware there's more to shopping than just picking something off the shelf," she said of the recalls. "You have to think a little bit more. You have to pay a little bit more attention."

Still, amid a challenging economy, plenty of parents will shop for the best price. Ryan noted that she will stick to shopzilla.com, a shopping site, to search for the best deals, avoiding small toy stores.

"I think the shoppers are out there looking for bargains," said Geoffrey Webb, director of advertising and sales promotions at K-B Toys Inc., which stepped up price cutting from a year ago. This season, the retailer launched what it calls its "supervalue" program, which offers discounts on hundreds of toys.

Barb Hollenbeck, owner of Second Childhood Toys, in Hastings, Minn. whose toys are about 20 percent higher than items found at discounters, said she's seeing some new customers and expects higher sales this season.

Still, she is realistic. While she doesn't see sticker shock among her new customers, "a budget will be an important factor" for shoppers.

"They are out there looking before they buy," she said.

© MMVII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
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by earlyprophet November 19, 2007 8:04 PM EST
RON PAUL SURGES AHEAD OF THOMPSON; TIED WITH MCCAIN
Republican presidential candidate Ron Paul is gaining momentum in New Hampshire and Iowa, according to a poll released November 13 by the New York Times. The Texas congressman has garnered an estimated 8 percent in New Hampshire, surpassing former GOP front-runner Fred Thompson, and is now tied with John McCain in Iowa. Polls released over the weekend by the Boston Globe in association with the University of New Hampshire Survey Center, and the Marist College Institute for Public Opinion, both confirmed Congressman Paul%u2019s support to be higher than Thompson%u2019s as well. "The polls confirm what we already know: Congressman Paul is catching on in the early primary states," said Paul campaign spokesman Jesse Benton. "His unifying message of freedom, peace, and prosperity is resonating strongly with voters in Iowa and New Hampshire, and we%u2019re rapidly gaining support nationwide." The New York Times poll was conducted November 2-12. On November 5, the Ron Paul campaign brought in a record-breaking $4.2 million online, and an additional $1 million to end the week.
Reply to this comment
by earlyprophet November 19, 2007 7:32 PM EST
YOU LIVE IN INTERESTING TIMES
America is tipping back way too far in her easy chair. Something BIG is about to happen, and I predict this upcoming 2008 election will be extremely pivotal. I''m not going to name any candidates. You probably already know who my favorite is. But let me make my point absolutely clear: If you think times are boring, think again. If you think the future is predictable, think again. My advice to everyone who reads this is to be thoughtful. Trust only that wisdom which is your own. 90% of mainstream media in this country is controlled by fewer than 20 different organizations. Unfortunately, they, like our sold-out political ****** in Washington, were bought and paid for by the military industrial pharmacutical complex decades ago. Therefore, they will paint pictures they want to paint, and people will open their minds to pictures they want to see. So, be skeptical. Be wise. Research issues and talking points on your own, and share what you learn with those you love. The future of your family tree may lay in the balance.
Reply to this comment
by earlyprophet November 19, 2007 7:29 PM EST
WERE HAVING A TEA PARTY! YOU''RE INVITED
As we all know, freedom isn''t free in this country. Therefore, in the wake of our successful fundraising event of November 5th, in which we all came together to raise $4.2 million dollars for Ron Paul''s campaign, we''ve set yet another date for an even bigger fundraiser. This one will take place during on December 16th: a very important date for people who love freedom and hate tyranny to ring the Liberty Bell, and let our sold-out, globalist, political ****** and their mainstream media enablers know that good Americans are mad as hell, and that we''re not going to take it anymore. December 16th is the 224th aniversary of The Boston Tea Party: an act of protest by the American colonists against the tyranny of Great Britain where the Sons of Liberty boarded British ships and dumped crates of tea overboard into Boston Harbor. It was a key event which helped to spark the American Revolution, and we hope this event will, likewise, add additional spark to our own 21st Century political revolution to restore peace, prosperity and freedom to our Republic by helping elect a President whose record of adherance to The Constitution is unmatched by anyone in American politics. Please join us this December 16th for the largest one-day political donation event in history. Our goal is to bring together 100,000 people to donate $100 each, creating a one day donation total of $10,000,000. The time to act is now. The time for Ron Paul is NOW! TeaParty07.com
Reply to this comment
by earlyprophet November 19, 2007 7:22 PM EST
RON PAUL IS THE NEW WAY
What we need is a President who will show us the way. Not the old way. Not the same way, but a NEW way. Think about this for a minute. What if we pulled all of our troops out of South Korea? They''ve been there for 50+ years. What if we quit worrying about Iran, but instead, realized that its having a nuclear weapon will not mean the end of the world? What if we pulled all of our troops out of the Middle-East, and brought them all home? What if we realistically addressed the National Debt, and paid attention to REALLY DOING SOMETHING about stopping illegal immigration? These are the ideas of Presidential candidate, Ron Paul. He''s a ten term Congressman and a physician who has delivered over 4,000 babies. He''s an intellectual who''s published four books, three of which are devoted entirely to sound economics and one to foreign policy. He was raised on a dairy farm in Pennsylvania as a pious Lutheran, but now he attends a Baptist church. Paul is given to mulling things over morally. Whenever he recollects the helicopter pilots he treated as an Air Force Flight Surgeon (Captain) during the Vietnam War, a war which he now says was "totally unnecessary and illegal," he laments, "They were gung-ho. I''ve often thought about how many of those people never came back." Candidates with the high level of personal integrity and proven track record of adherence to The Constitution, Congressman Paul has always demonstrated only come around once in a lifetime, if we''re lucky.
Reply to this comment
by earlyprophet November 19, 2007 7:21 PM EST
RON PAUL TAKES ON FEDERAL RESERVE CHAIRMAN
Federal Reserve Chairman Ben Bernanke appeared before the Congressional Joint Economic Committee Chairman, Congressman Ron Paul on November 8th, and had to face some tough criticism concerning the fact that the Fed has been increasing the money supply while at the same time refusing to raise the Prime Interest Rate in order to curb inflation and devaluation of the Dollar. Paul accused the Federal Reserve of "robbery," telling Bernanke, "There''s a dollar crisis out there and people''s money is being stolen," Paul said. "People who have saved, they''re being robbed. I mean, if you have a devaluation of the dollar at 10 percent, people have been robbed of 10 percent." Federal Reserve Chairman Ben Bernanke attempted to dispel that notion by explaining, "If somebody has their wealth in dollars and they''re going to buy consumer goods in dollars, then the only effect it has on their buying power is that it makes imported goods more expensive." Paul disagreed, reminding Bernanke, "Yeah, but not if you''re elderly and you have your wealth in CDs. Their cost of living is going-up no matter what your CPI says," adding finally, "Their cost of living is going up, and they''re hurting. And that''s why the people of this country are very upset."
Reply to this comment
by earlyprophet November 19, 2007 7:12 PM EST
RON PAUL IS THE TAXPAYER''S BEST FRIEND
If he is elected President, Ron Paul will work to abolish the Federal Reserve System as well as the IRS, returning our country to the Gold Standard. He believes, as I do, that our current Income Tax System is unconstitutional, because it is a direct tax that is not equally apportioned as The Constitution requires. Whenever taxes are raised by the federal government, it should be done as The Constitution does require--in an indirect way, which is equally apportioned. This system would benefit all of us, creating more individual wealth, and allowing us to make more decisions for ourselves about our lives. As President, Ron Paul will also work to abolish the Federal Reserve, a group of private banks, run by unelected officials, which loans our government unbacked money which they are allowed to essentially print out of thin air, making each dollar in your pocket worth less all the time, and increasing our national debt to these banks. Worse still. Most of our debt is owned by China (25%) and Saudi Arabia who finance our runaway military spending overseas. This is a threat to our nation. We need to bring our troops home from overseas, and use the trillions we would save thereby to reduce our debt, and to re-invigorate our currency. We can use this money to ensure that Social Security and other essential programs will still be solvent in the future. Vote for Ron Paul. He''s published three books on the topic of sound economics. ronpaullibrary.org
Reply to this comment
by peaceprophet November 18, 2007 8:49 PM EST
WERE HAVING A TEA PARTY! YOU''RE INVITED
As we all know, freedom isn''t free in this country. Therefore, in the wake of our successful fundraising event of November 5th, in which we all came together to raise $4.2 million dollars for Ron Paul''s campaign, we''ve set yet another date for an even bigger fundraiser. This one will take place during on December 16th: a very important date for people who love freedom and hate tyranny to ring the Liberty Bell, and let our sold-out, globalist, political ****** and their mainstream media enablers know that good Americans are mad as hell, and that we''re not going to take it anymore. December 16th is the 224th aniversary of The Boston Tea Party: an act of protest by the American colonists against the tyranny of Great Britain where the Sons of Liberty boarded British ships and dumped crates of tea overboard into Boston Harbor. It was a key event which helped to spark the American Revolution, and we hope this event will, likewise, add additional spark to our own 21st Century political revolution to restore peace, prosperity and freedom to our Republic by helping elect a President whose record of adherance to The Constitution is unmatched by anyone in American politics. Please join us this December 16th for the largest one-day political donation event in history. Our goal is to bring together 100,000 people to donate $100 each, creating a one day donation total of $10,000,000. The time to act is now. The time for Ron Paul is NOW! TeaParty07.com
Reply to this comment
by peaceprophet November 18, 2007 8:48 PM EST
HOPE FOR AMERICA: PRESIDENT RON PAUL

-- No more meddling in other country''s political affairs
-- No more aggressive military actions overseas
-- No more torture prisons
-- No more pseudo-wars like the "War on Drugs"
-- No more IRS and unconstitutional income taxes
-- No more Federal Reserve (the group of private banks which owns our government)
-- No more erosion of Social Security to pay for militarization
-- No more U.N. (one world government) participation
-- No more NAFTA, CAFTA, WTO or GATT (globalist trade cartels)
-- No more North American Union (loss of U.S. sovereignty)
-- No more federal gun control laws
-- No more illegal aliens pouring-in over our country''s borders
-- No more illegal aliens allowed to roam freely in our streets
-- No more national ID cards (Real ID Act)
-- No more government invasion of your privacy
-- No more federal Laws which are not authorized by The Constitution
-- No more federal erosion of State sovereignty
-- No more unlimited federal government

They don''t call him "Dr. No" for no reason. The Doctor is in! Join us in this 21st Century political revolution at ronpaul2008.com

"It does not take a majority to prevail, but rather an irate, tireless minority, keen on setting brushfires of freedom in the minds of men"
- Samual Adams

"Ron Paul doesn''t represent your Father''s school of political thought. He represents your Founding Fathers."
- Me
Reply to this comment
by feelfree1 November 18, 2007 5:59 AM EST

I''m dreaming of a red-ink Christmas.
Reply to this comment
by rudy654-2009 November 18, 2007 3:47 AM EST
What a paradox this system of ours is. The petroleum companies are out to suck us dry, but industry everywhere else hopes we''ll continue to spend anyway. But don''t forget that not to long ago a certain President reminded us that we have not been resourceful enough. Let me off this whacky merry-go-round. I hope that all the greed comes back to haunt all industries, but especially big oil.
Reply to this comment
by adasher1 November 18, 2007 1:01 AM EST
LawyerTom1, what is the real reason we celebrate Christmas, god? Listen, your religon hijacked a pagan celebration day (shortest day of the year) and claimed that the god u feel for was born on that day. Please.....you need to remember the real reason for that day, and it is NOT because of your god. Read deeper......much deeper.
Reply to this comment
by lawyertom1 November 18, 2007 12:24 AM EST
Remember the real reason we celebrate Xmas and the philosophy he set forth. Spend some time helping those less fortunate. Donate. Work at a homeless shelter. Get out of the greed straight-jacket.
Reply to this comment
by me4prezz November 17, 2007 11:58 PM EST
Thank you PeaceProphet, you have reaffirmed my decision NOT to vote for Ron Paul. Mission complete. I am sure he will thank you for turning votes against him!
Reply to this comment
by usayesterday November 17, 2007 10:02 PM EST
Wish I could buy them a voting machine (English only).

Posted by rushlimpdrug at 06:42 PM : Nov 17, 2007
..........

Last I heard, those were made in Taiwan...

...and programmed by ***** Cheney and Associates, LLC.

Though I have seen one of those "pull string" toys featuring various animals and the sounds they make:

"The Vice President goes.... OINK... OINK... OINK!"

"The President goes..... (um, how do you spell the sounds a chimp makes?)"
Reply to this comment
by greeneyes222 November 17, 2007 9:50 PM EST
It''s a shame those toy retailers didn''t worry before the products were recalled. They put thousands of children at risk, and we''re supposed to worry about their sales?

The only toys we''ll buy will be clearly labeled for country of origin and they won''t come from China, Mattel, Fisher-Price, etc.
Reply to this comment
by rushlimpdrug November 17, 2007 9:42 PM EST
No toy buying from me this season.
Only practical items getting into the hands of the little ones this year.
Wish I could buy them a voting machine (English only).
Reply to this comment
by adasher1 November 17, 2007 9:29 PM EST
USAyesterday, well said. I of course reported him for spamming to CBS because I tire. Idiots. The way to the White House is NOT by makng peeps upset. Ron Paul is a dork to me JUST BECAUSE some pees spam here.....no matter what else he stands for. People are ruining his chances.
Reply to this comment
by usayesterday November 17, 2007 8:12 PM EST
It appears that CBSnews.com has had to shut down a few comment boards because of the RON PAUL SPAMMING KOCK SUCKERS DESTROYING THESE DISCUSSIONS WITH THEIR REPEATED BULL ******!

It''s a crying shame.
Reply to this comment
by peaceprophet November 17, 2007 7:18 PM EST
RON PAUL IS THE TAXPAYER''S BEST FRIEND
If he is elected President, Ron Paul will work to abolish the Federal Reserve System as well as the IRS, returning our country to the Gold Standard. He believes, as I do, that our current Income Tax System is unconstitutional, because it is a direct tax that is not equally apportioned as The Constitution requires. Whenever taxes are raised by the federal government, it should be done as The Constitution does require--in an indirect way, which is equally apportioned. This system would benefit all of us, creating more individual wealth, and allowing us to make more decisions for ourselves about our lives. As President, Ron Paul will also work to abolish the Federal Reserve, a group of private banks, run by unelected officials, which loans our government unbacked money which they are allowed to essentially print out of thin air, making each dollar in your pocket worth less all the time, and increasing our national debt to these banks. Worse still. Most of our debt is owned by China (25%) and Saudi Arabia who finance our runaway military spending overseas. This is a threat to our nation. We need to bring our troops home from overseas, and use the trillions we would save thereby to reduce our debt, and to re-invigorate our currency. We can use this money to ensure that Social Security and other essential programs will still be solvent in the future. Vote for Ron Paul. He''s published three books on the topic of sound economics. ronpaullibrary.org
Reply to this comment
by tylenol6 November 17, 2007 6:34 PM EST
What a coincidence!!!! Hillary Clinton''s chief strategist, Mark Penn is CEO of Burson-Marsieler and the
company that makes Aquadots. It makes the bead toys with
a coatinnnnnnng the turns the date rate drug when children put it in their mouth. Oh Hillary, I''m real sure you didn''t know this....Hmmmmm................
Reply to this comment
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