This Christmas season might be one of the safest times to buy toys for children, but it also could be one of the most frustrating for shoppers hunting for the hottest releases.
After several toy recalls this summer, manufacturers and retailers are stepping up inspections in their stores, plants and warehouses.
Though that’s good for the safety of the U.S. toy supply, the timing is awful for toy retailers, most of which already have placed their holiday orders. Many are awaiting shipments.
There are 3 billion toys sold each year in the United States, and many toy retailers ring up at least a quarter of their annual sales in November and December.
But with 80 percent of the toys sold in this country originating in China, the scope of the shifts in safety standards has ramifications for this holiday season and even into next year.
In the short-term, toy stores this year might see inventory shortages, and the resulting slump in sales could also lead to higher toy prices and a decrease in seasonal hiring.
In the long-term, the ripple effect of this summer’s recalls are expected to reach far into 2008, with rising toy prices and the possible expansion of the new testing standards to other products.
“Vendors are putting a lot of pressure on their manufacturing plants in China to get it right,” said Jim Silver, editor of the industry magazine Toy Wishes. “The whole process is going to get slower.”
The recalls that started it all were a trio of announcements over a five-week period from toy giant Mattel. Consumers learned that toys bearing some of this country’s most beloved brands, including Barbie and Sesame Street, were among the recalled products.
Retailers are trying to address the recalls and reassure worried shoppers that toys are safe.
Wal-Mart introduced new safety guidelines that include 200 additional tests each day on toys likely to end up in children’s mouths. Toys “R” Us launched a Web site for product safety and recall information. KB Toys stepped up its inspections of incoming shipments and toys already on store shelves.
Many analysts are predicting toy shortages during the holiday shopping season as replenishment shipments are delayed for testing.
“Most Christmases, you’ll get situations where all these items sold out Dec. 10, and they say they’ll be in in three or four days,” said Silver, the Toy Wishes editor. “In a lot of cases, it’s not going to happen.”
Silver said parents should not delay in grabbing must-have items.
“You won’t see an effect before Thanksgiving, but this is really a year to shop early for key items,” he said.
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