Amazon, Toys ‘R’ Us take gloves off for holidays

“We’re focusing on what we do well as well as we can,” said Arthur.

Dougherty believes that both companies have its advantages and disadvantages. She noted that while Toysrus.com is the authority on toys, it needs to better take advantage of its presence both online and in stores. A big advantage, she said, is if shoppers can order online and then pick it up in the stores. Toysrus.com is testing that service in certain markets this holiday season; it will be rolled out nationwide next year.

Storch noted the retailer will also be expanding its baby registry online while further blending the online and offline experience.

Dougherty said that Amazon.com’s edge is its ability to drive customer traffic to its site with its wide breadth of products. In fact, Arthur said it will be sending out targeted e-mail campaigns to shoppers based on what they have bought in the past.

“We have a great wealth of information,” Arthur said.

But Chris Byrne, an independent toy consultant, noted, that Amazon.com’s weakness is that it is not an authority on toys and doesn’t have the relationship with makers to keep hot toys in stock closer to Dec. 25.

In fact, availability could be an even bigger problem with every toy seller this holiday season. Stores are reporting better-than-expected demand on some holiday toys particularly T.M.X. Elmo from Mattel Inc.’s Fisher-Price, which could be this year’s must have toy, after several years without one. Dougherty said that if T.M.X. does become the must-have product, it will only increase the competitive stakes.

Amazon.com said it sold out of its allotment of T.M.X. Elmo but is working with Fisher-Price to get more. Meanwhile, Toys "R" Us spokeswoman Kathleen Waugh said new shipments are coming in, though they sell out quickly.

Meanwhile, eBay, which always benefits from hard-to-find items, could be the real winner. It sold 9,700 Elmos on Sept. 20, a day after the toy made its debut in stores, according to eBay Marketplace Research. From Sept. 19 through Sept. 29, it has sold 37,420 T.M.X. Elmos at an average price of $87.11. That’s more than double the $39.99 retail price.

MORE FROM U.S. BUSINESS

U.S. business Section Front

The Big Money: Facebook 50 BofA aims to clearly spell out credit card terms Employers play Dr. Mom to limit flu impact   Can newspapers get rich by shunning Google? Pay Czar cuts pay of two top BofA executives AT&T, Verizon face off in TV ads Patented seeds lead to antitrust inquiry Canada court rules for Wal-Mart in union case Newsweek: Google-Microsoft battle hurts consumers AIG, ex-CEO Greenberg settle disputes U.S. business Section Front   Add U.S. business headlines to your news reader: