Safe toys to cost more — but not this Christmas

This week, Toys “R” Us Inc., the nation’s second-largest toy seller behind Wal-Mart, said it would be using an independent laboratory to test every branded product. The retailer will be absorbing the extra costs for now, but company spokeswoman Kathleen Waugh said she believes “pricing could increase” next year.

The Walt Disney Co. — hit by Mattel’s recall of 436,000 cars based on “Sarge,” a character in the Disney-Pixar movie “Cars,” that were believed to contain lead paint — will independently test toys featuring its characters. The tests will begin in the next two weeks and will include all categories of products from about 2,000 licensees, including Mattel, which is the largest maker of Disney-related toys.

Disney consumer products spokesman Gary Foster said Disney will absorb the additional costs, which he estimated to be about several million dollars this year. It’s unclear whether future costs will be shared by licensees, he said.

Price wars led by Wal-Mart have put financial pressure on toy manufacturers, though they have been able to push through price increases in recent years as they face higher resin and other related costs.

The average toy price remains relatively cheap because the bulk of toys sold involve $1 items such as card games and miniature cars — impulse purchases that can be picked up in the local supermarket. According to NPD, which tracks prices of specific toys and categories, the average selling price of a toy increased to $7.53 in 2006, compared with $7.17 in 2005 and $6.97 in 2004.

Chris Byrne, a New York-based toy consultant, said shoppers can still expect price wars this holiday season, led by Wal-Mart.

Some shoppers say they are postponing toy buying until they are comfortable that the toys are safe.

“I am open to price increases as long as they are going to do their job,” said Jenny McMorow of Buffalo, N.Y. “We’ve been spoiled enough by the low prices.”

For her twin sons’ birthday next month, McMorow will be avoiding traditional toys and looking at playswings or a sand box. “Nothing they can chew on or swallow,” she said.

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