Preschool category grows at discount level - Toys - Discount Industry Annual Report. Part II: Merchandising and Productivity Analysis

Discount Store News, August 5, 1991

Preschool Category Grows at Discount Level

It's been a tumultuous year in the toy business, punctuated by a national recession, war, bankruptcies, acquisitions and the lack of a blockbuster toy.

Teenage Mutant Ninja Turtles action figures topped many retailers lists in 1990 as their biggest seller. And while action figures in general and the entire Ninja Turtle license continue to be strong at retail, they are no longer blockbusters.

Neither is Nintendo, a perennial favorite.

By most accounts, 1990 and at least the first half of 1991 appear "off." Industry toy sales were flat last year, and sales and earnings for many retailers--including No. 1 Toys "R" Us--as well as manufacturers, continue to be depressed.

So far, no toy is emerging on the "must have" list of most families with children.

But things could change rapidly, particularly now that the tumult of the first half of the year is past. After all, the Christmas selling season is just four months away, and the Persian Gulf war and the recession are over. And, according to national statistics and independent economists reports, consumers are beginning to loosen their purse strings.

If introductions at the 1991 Toy Fair are any indication of what the year holds in store, the coming holiday season should be chock full of TV dolls, plush toys, board games, play sets, action figures, race cars and trading cards. Nintendo's 16-bit games should be available by the end of the year and some surprise winners like last year's Go Go My Walking Pup, may appear to spice things up.

Radio-controlled cars and trucks, World Wrestling Federation toys, and various licensed goods bearing the monikers and images of Robin Hood, The Little Mermaid and The Rocketeer, could help charge the weary toy business this year, as could patriotic themes bearing the highlights of the Persian Gulf war.

Toys with environmental themes, such as Toxic Crusaders by Playmates and Swamp Thing by Kenner may also hit a nerve this year as recycling, conservation and environmental concerns permeate many households.

Dolls, especially popular during 1990, may find 1991 as receptive to their individual charms as they were a year ago. Already, the Baby Face collection by Galoob has found a ready audience, and Mattel is expanding on its popular Magic Nursery dolls with an extended line of products. Add to that Hasbro's Cabbage Patch collection and Mattel's Barbie line, plus a host of other introductions, and dolls could be a winner again in 1991.

The preschool category offers real opportunities for manufacturers and retailers alike, now that a baby boomlet is firmly in place. Kmart, for example, is seizing the moment with a greatly expanded selection of preschool toys, including a new 45-foot section by Little Tikes.

At Toy Fair, introductions and line expansions abounded in the preschool category, including electronics and computer-oriented toys by Playtime and Playskool. Lego, too, is focusing its attention this year on expanding the penetration of its Duplo line, chunky building blocks for little hands.

PHOTO : Harts, Lima, Ohio: Toys for preschoolers, like this tractor from Little Tikes, is an expanding category at discounters.