Recalls bring bad tidings for holiday toy sales

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.

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