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Monday, November 30, 2009

Tiny toys, monster hitsmonster hits

Tops in holiday 2009 toy trends, Zhu Zhu Pets are a rare find.

MIAMI -- Mr. Squiggles and his friends are the perfect pet. These toy hamsters don't smell, die or wake you up in the middle of the night.

The fuzzy robotic toy hamsters known as Zhu Zhu Pets are the hot toy of the season, flying off store shelves and sending frantic parents scurrying around town. Think Furby, Cabbage Patch Kids and Tickle Me Elmo.

Melinda Zisser has been to the Toys R Us and Target in Plantation, Fla., multiple times, only to just miss the shipments and come up empty-handed. She's called the manufacturer, and her mom has visited stores in Jacksonville, Fla.

The only thing she won't do is give in to the mark-up on Amazon.com or eBay, where the toy that retails for under $10 is selling for up to $50.

"I didn't realize I would be in the horde of masses, searching for the perfect holiday gift," said Zisser, who was hoping two Zhu Zhu Pets would replace a daughter's dead hamster and her son's desire for a live pet. "If I knew I could get them in China, I would get on a plane and actually go."

In Roanoke, June Tegenkamp was lucky enough to find one -- plus an accompanying hamster toy and some accessories -- at a Walmart for her 4-year-old granddaughter. Tegenkamp wrote in an e-mail that her daughter, who lives in Charlotte, had trouble finding the toy there.

Home is where the fun is

Zhu Zhu Pets are the surprise hit of the holiday season.

Walmart can't even get the toys out of the box before they're gone. Learning Express in Pembroke Pines, Fla., received about 200 two weeks ago and they were gone in a little over a day. The store already has a waiting list of 300 people.

"We'll be getting in another shipment before Christmas," said Cassandra Llanusa, a store employee. "They won't even tell us when they're coming. It's a surprise when we get them."

The Zhu Zhu Pets shortage is a combination of conservative retail inventory management and a low price (between $8 and $10) that fits today's budget-conscious parent.

The hamsters are all interactive and each has its own personality. Mr. Squiggles is the one who loves to explore, and Chunk, is a laid-back surfer. The hamsters drive around in little cars or run on hamster wheels.

They are so smart they make toilet-flushing or teeth-brushing sounds when they go in their bathroom, and sleeping noises when they go into their bedroom.

Even with efforts by the manufacturer to speed up production, there's no way the Zhu Zhu Pets supply will come anywhere close to meeting the demand.

But their popularity is expected to be good for the toy industry.

"We haven't had a hot toy like this since 2006," said Richard Gottlieb, a New York-based toy industry expert. "It's good because it drives people into the toy department. When they're back in the toy department, they buy other things."

Some of the other popular toys parents might turn to this year include: Barbie Fashionista, Mindflex game, Dora Links doll, Maxus Drago Bakugan, Liv Dolls, Crayon Town and Star Wars Clone Turbo Tank.

Board games also are enjoying a resurgence as families look for affordable entertainment. Sales of board games are up 6 percent for the year, according to the Toy Industry Association. There have been new versions of familiar classics such as Candyland, Monopoly and Connect Four. And new favorites such as the "Twilight" edition of Scene It? are hitting store shelves.

"People are having family entertainment night, instead of going out to the movies," said Reyne Rice, toy trend specialist for the Toy Industry Association. "You buy a game for $20 and you can play it over and over. It's a way to reconnect with people."

Classics still popular

The $22 billion toy industry is expecting business to be about the same as last year.

That's because even in a bad economy, shoppers such as Jacqueline Burns still will buy toys for her kids.

"You can cut back on yourself, but not the kids," said Burns, of Pembroke Pines, Fla. "You see how happy they get. They're so excited and waiting for that day."

With a decline in her husband's income, Burns will spend only $400 on her two kids, compared to $300 last year on one. That's why she plans to shop at Walmart. "You can compare prices and Walmart has the cheapest price," Burns said.

Walmart has been trying to make it easier for the budget-conscious parent with its aggressive promotion of 100 toys for less than $10, which it rolled out in October.

Discounts of between 20 percent and 50 percent off regular prices have been driving sales of items such as the Nerf N Force sword, Transformers action figures, Cut and Style Barbie and Vtech Explore and Learn Helicopter.

"The whole $10 category seems to be doing better than the rest of our toy department," said Freddie Miller, market manager for Walmart in Broward County, Fla. "As the economy gets tougher, parents have to look for better value. When prices are lower, you're able to get more for your money."

But Toys R Us CEO Jerry Storch thinks parents care about more than just price when it comes to purchasing toys.

"Parents are not looking for the cheap way out," Storch said in a telephone interview. "They're still very concerned about the quality and the safety of the toys they buy. Parents also want to bring home a Christmas present that has a 'wow' factor to it."

Storch says the focus on quality often leads parents back to classic names they know and trust, such as Lego.

Industry analysts agree, pointing to a resurgence in other longtime favorites such as Hot Wheels, Crayola and Barbie.

"Those are classic play patterns that don't go away," said Chris Byrne, an industry analyst known as "The Toy Guy."

"Kids are going to enjoy playing with crayons whether it's 1903 or 2009."

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