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Toys in the News: 8-31-09 Disney Strikes Agreement to Buy Marvel. August 31, 2009 — The Walt Disney Company and Marvel Entertainment have reached agreement for Disney to purchase the company of superheroes in a stock and cash deal. According to a press release, the transaction is worth about $4 billion based on the closing price of Disney stock last week. Ike Perlmutter, chief executive officer of Marvel, will be in charge of Marvel's properties now under the Disney umbrella — a cast of 5,000 characters including well-known favorites Spider-Man, Iron Man and Fantastic Four.
Mattel Exempt from Third-Party Toy Safety Testing. August 27, 2009 — The U.S. Consumer Product Safety Commission has given Mattel permission to use its own labs for toy testing to meet requirements under the Consumer Product Safety Improvement Act. While other manufacturers must pay independent third-party labs to test children's products for lead and phthalates, seven of Mattel's labs — in China, Mexico, Indonesia, Malaysia and California — have been stamped as "firewalled third-party laboratories" that the CPSC has deemed safe from corporate interference. Similar exceptions for other companies are currently under consideration by the Commission, the Associated Press reported. Toy Shoppers Plan Before They Buy. August 27, 2009 — According to an NPD Group survey of more than 2,300 toy-buying consumers, 70 percent of shoppers decide where to go and what toy to buy before heading out on a shopping excursion. The Toy Purchase Decisions report also found that child request and effective packaging and display are the primary influences on unplanned purchases, and nearly 75 percent of the consumers expressed preference for one-stop-shop mass-market stores over trips to specialty shops. Nearly 80 percent said they'd rather shop in-store than online, to get a good look at the products. Researchers Use Classic Toys in Microfluidics Experiments. August 26, 2009 — Scientists involved in the field of microfluidics are using toys to study the behavior of fluid amounts as small as a few nanoliters, according to ZDNet. Engineers at Johns Hopkins constructed an obstacle with peg-shaped LEGOs and tracked the path of stainless steel balls through the platform in order to better understand what happens with microfluidic arrays at the nanoscale level. Another engineer, at the University of California, Irvine, used cost-effective Shrinky Dinks to create microfluidic chips, complete with ink ridges and minute channels. Toys "R" Us Announces Trade-In Program for Used Baby Goods. August 26, 2009 — Toys "R" Us today launched a "Great Trade-In" program whereby customers can exchange used car seats, cribs, strollers, play yards, high chairs and other baby products for a 20-percent discount on the purchase of a new baby item. The event, which runs through Sept. 20, was created in part to urge return of potentially unsafe products and prevent resale of recalled goods; Kids in Danger reported that, typically, less than 30 percent of recalled baby goods are returned. Hasbro's Jurassic Park Line to Hit Toys "R" Us. August 25, 2009 — Under agreement with Universal Partnerships & Licensing, Hasbro will introduce a "Jurassic Park" dinosaur action figure lineup exclusively to Toys "R" Us stores nationwide this fall. "Since the dinosaurs of 'Jurassic Park' first stomped onto movie screens more than 15 years ago, they've captured kids' imaginations. ... we're excited to be the only retailer to offer kids and collectors official 'Jurassic Park' action figures," Karen Dodge, senior VP, chief merchandising officer, Toys "R" Us, said in a press release. Buzz Lightyear to Return from Space. August 24, 2009 — The shuttle Discovery will pick up a Buzz Lightyear toy this week when it visits the international space station, where the Toy Story character has resided since May 2008. What has Buzz been doing all that time? Not much, the Associated Press reported; according to Mike Suffredini, space station program manager, "Buzz has spent a lot of time stowed. We don't bring him out and play with him." McDonald's Celebrates 30 Years of Happy. August 24, 2009 — This year marks the 30th anniversary for the McDonald's Happy Meal, 20 billion of which have been sold worldwide since 1979 and played host to a parade of toys and licensed characters, including 100 million of Ty's Teenie Beanie Babies, according to The Plain Dealer. New Toy Tests Needed for Kids With Big Bite. August 21, 2009 — A study led by Dr. Gary Mountain at the University of Leeds in the UK found that 3-year-olds can have the bite strength of a canine, prompting the researcher to recommend introduction of a bite-testing standard for the toy industry. Mountain believes age warning labels on products aren't enough, since parents sometimes don't read them or relate them to small parts hazards; he also pulled from research on the number of children sent to emergency rooms after inhaling or swallowing small parts, ScienceDaily reported. In the study, a new dental instrument was used to measure the bite force of more than 200 3- to 5-year-olds. An interpretive rule on inaccessible component parts published by the U.S. Consumer Product Safety Commission in July clarified that in use and abuse testing of toys and other children's products, "the Commission does not use the bite test specified in the three CFR sections [16 CFR 1500.51, 1500.52 and 1500.53] as a result of a court case ... that questioned the appropriateness of this test," but noted the regulation could be changed in the future. Middleton Doll Building, Not Company, for Sale. August 20, 2009 — Middleton Doll has put its Belpre, Ohio, home store and museum building up for sale in hopes that a buyer will lease it back in order to sustain the business, WTAP reported. Operations Manager Charlotte Dolak indicated that Middleton plans to keep the company running whether there or in another building. Middleton Doll has resided in Belpre since 1989 and ran a factory there until production moved overseas in June 2004.
Bella Sara Brings Licensing In-House Under VP Stetar. August 20, 2009 — Bella Sara announced today that it will move all licensing for the line in-house as the brand built around a magical world of horses expands into apparel, stationery and other categories. George Stetar, VP of international business, licensing and merchandising for the company, will oversee all licensing agreements. Current Bella Sara licensing deals include those with Jakks Pacific for toys and Waterbury Garment LLC for children's sleepwear, according to a press release.
Paglinco Promoted to VP and CFO at Russ Berrie. August 19, 2009 — Guy A. Paglinco, interim chief financial officer for Russ Berrie since January, has been promoted to vice president and chief financial officer, the company announced. Paglinco has been with Russ Berrie since September 2006, previously serving as vice president - corporate controller and then vice president and chief accounting officer. U.S. Toy Sales Drop 2 Percent in First Half. August 17, 2009 — Domestic toy sales for the period Jan. 4 through July 4 came in at $7.81 billion, registering a 2-percent decline over the year-ago period's $7.95 billion, according to the NPD Group. MarketWatch reported that while sales were up 13 percent for action figures, 20 percent for construction toys and 10 percent for board games, Internet-connected toys took a 43-percent plunge in sales, and dollar sales for 3- to 5-year-old fell 6 percent. TGH International Trading Fined $31,500 for Small-Parts Violation. August 17, 2009 — TGH International Trading of Los Angeles will pay $31,500 in civil penalty fees to settle allegations that the company knowingly imported and sold toys with small parts that posed choking risks to young children, in violation of the Federal Hazardous Substances Act. The claim involves more than 11,000 toys imported into the United States in 2005 and 2006. TGH denies that it violated the law, the CPSC reported. LEGO's Half-Year Profit Jumps 65 Percent. August 17, 2009 — Privately held company LEGO reported Monday that its six-month net profit jumped to $177 million, an increase of about 65 percent from the same period last year. The manufacturer largely benefited from best sellers LEGO Star Wars and LEGO City, as well as the launch of LEGO Power Miners. While English-speaking toy markets fell somewhat during that time frame, European toy markets grew. Earlier this year, LEGO invested in new injection-molding machines at factories in Hungary, Mexico and Denmark. Educational Toys Not So Important, Psychologist Says. August 14, 2009 — Psychologist Alison Gopnik of the University of California, Berkeley, calls educational toys a "boondoggle," saying that parents paying attention to their kids and simply letting their babies discover how other people's brains work is more crucial to their development than traditional education. TIME reported that Gopnik, author of "The Philosophical Baby," says babies are emphathetic and sensitive to others' emotions early on, and that there is an intense amount of learning happening in the mind of a baby minute by minute — knowledge that is, in fact, tied to the child's moral and emotional development. Steady Prices May Offer Hope. August 14, 2009 — The New York Times today reported that consumer prices held steady last month, according to the Labor Department. Prices had dropped over the last year, with this summer's prices 2.1 percent lower than last July's. Prices have held steady, though, since June 2009, giving rise to cautious optimism that the recession may be ending. On Friday, the Federal Reserve also reported that industrial production had risen last month for the first time since October 2008.
Piggy Paint and Exploramania Party With the Stars. August 13, 2009 — Exploramania's Gymathtics DVD received the Hollywood treatment with visits from David Henrie from "Wizards of Waverly Place" and Jason Earles from "Hannah Montana" and other stars at the 2009 Teen Choice Awards Pool Party Gift Suite. At the event, the company also announced its new Exploracise Math Mat and Exploracise Thumballs-Educational Series. Mega Brands' Loss Exceeds $13 Million. August 13, 2009 — A sales drop of 34.1 percent and continued recovery from the 2006 Magnetix recall contributed to Mega Brands' larger-than-anticipated second-quarter loss, which hit $13.3 million, versus $3.6 million for the same period last year. Reuters reported that although both the company's toy and stationery lines are suffering, it expects the new Battle Strikers line to yield better results later this year.
U.S. Retail Sales Fell 0.1 Percent in July. August 13, 2009 — Department stores took the biggest hit from falling retail sales in July, see a decrease of 1.6 percent during the first overall decline in three months, Bloomberg reported. Shoppers didn't spend as much on sporting goods, furniture, groceries or electronics, while the cash-for-clunkers programs revived sales at car dealerships and auto parts stores with 2.4 percent growth. Iranian and Jewish Groups Urge Bratz Mistrial. August 12, 2009 — Following request for a new trial filed by MGA Entertainment in early July with the 9th U.S. Circuit Court of Appeals, the Anti-Defamation League, the Public Affairs Alliance of Iranian Americans, the Iranian American Jewish Federation and the Iranian American Bar Association joined the toymaker's mistrial fight with an amicus brief supporting MGA's stance that anti-Iranian racist comments made by a juror who was later dismissed influenced the jury's deliberation in a trial last year that awarded Mattel $100 million in damages over the Bratz doll line, the National Law Journal reported. Issac Larian, CEO of MGA Entertainment, which launched Bratz in 2001, is Iranian-American.
Your New Competitor: A Local Sears Store? August 12, 2009 — According to the Associated Press, Sears Holding Corp. will begin offering toys in 20 of its stores beginning this Saturday. In addition to offering mass-market brands including Mattel's Fisher Price, Hasbro, LeapFrog, Spin Master's Bakugan and VTech toys, the stores will also carry specialty toys such as Schylling, Thomas Wooden Railway, Gund Plush and Madame Alexander. These toys can be bought online or at Sears stores in Chicago, Los Angeles, San Francisco, New York and other locations. LEGO Goes Hollywood. August 12, 2009 — Hoping to capitalize on the recent success of rival Paramount's toy-related movie, "G.I. Joe," Warner Bros. is teaming up with LEGO to develop a film around the popular building blocks. Variety reports that Dan and Kevin Hageman are on board to write the screenplay for a family comedy mixing live action and animation. Though the plot is hush-hush, the movie will be an action adventure set in a Lego world. LEGO has previously produced its own Bionicle-related straight-to-DVD flicks. Back-to-School Shopping Gets Slow Start. August 11, 2009 — Forty-four percent of consumers polled by the NPD Group in July said they plan to spend less on back-to-school shopping this year — a 9 percent increase from last year — with the biggest cuts expected in apparel and footwear. The NPD report also outlines a 5 percent rise in the numbers of consumers who won't shop for back-to-school items at all (77 percent) or haven't started yet (17 percent). Furthermore, spending priorities are projected to be down on electronics, school bags, beauty products, and the percentage of consumers planning to buy things because they are trendy or fashionable has dropped from 18 percent to 13 percent.
Gender Dictates Babies' Toy Preferences, Study Shows. August 10, 2009 — A study paid for by the National Science Foundation and headed by psychology professor Gerianne Alexander of Texas A&M University found that boys and girls are likely born with their respective preferences toward trucks and dolls. KBTX reported that the research tracked eye movements of 30 3- to 8-month-olds, finding that when presented simultaneously with a doll and a toy truck, the girls focused longer on the doll and the boys paid more attention to the truck. In 2004, Alexander tested green vervet monkeys, finding that the males naturally gravitated toward a car or a ball, while the females spent time playing with a doll and a pot. Takara Tomy Translates Fido's Feelings Into Speech. August 10, 2009 — Japanese dog owners will soon be able to know what their pooches are thinking — or at least that's the goal with Takara Tomy's "Bowlingual Voice" translator, which consists of a microphone collar attachment for dogs and a wireless receiver for pet owners. The device is designed to read different emotions, including happiness, sadness, neediness and alertness to danger, and convert those feelings into speech with phrases such as "Play with me," according to the Los Angeles Times. It will launch in Japan for about $215 U.S. later this month. A previous version released seven years ago did not feature sound.
"G.I. Joe" Pulls in $56.2 Million at Box Office. August 10, 2009 — Paramount's "G.I. Joe: Rise of the Cobra" snatched the No. 1 spot at the domestic box office over the weekend, totaling $56.2 million — a significant win over Sony's "Julie & Julia," which came in at second place with $20.1 million, according to the Hollywood Reporter. "G.I. Joe," which totaled roughly $175 million in production costs, skewed more toward male audiences and brought in $40 million overseas.
Updated Handbook Gives Guidelines for Resale Stores. August 6, 2009 — The U.S. Consumer Product Safety Commission has posted to its website an updated CPSC Handbook for Resale Stores and Product Resellers providing an overview of products that should not be sold — including recalled items, children's products that contain excessive levels of lead, children's products that contain pthalates prohibited by law, and other items that violate CPSC standards and pose a safety hazard — as well as guidelines on small parts, magnetic toys, cribs and playpens, toy chests and more.
Old Navy Hosts Super Heroes for Marvel's 70th. August 6, 2009 — Marvel Entertainment has expanded its partnership with Old Navy in celebration of Marvel's 70th anniversary. The clothing retailer is featuring X-Men, Spider-Man, Iron Man and other super heroes on hoodies, tees and more for the back-to-school season, and will also give away a limited edition reprint of the Amazing Fantasy #15 comic with purchase of a Marvel Collectabilitee T-shirt, according to a press release. No Toying Around on Twitter. August 6, 2009 — Although various toy manufacturers and specialty toy stores have been updating audiences via Twitter on a daily basis, tweets were delayed this morning as the company faced what's thought to be a "denial-of-service attack" due to overwhelmed servers. PC World reported the Twitter website had been down for over a hour. See more on social networking for business, including toy companies' involvement on Facebook and Blogs, as well as the Toy Industry Association's online community, ToyConnections. Mattel Named a Los Angeles "Best Place to Work." August 5, 2009 — For the third year in a row, Mattel Inc. has been honored as one of the "Best Places to Work in Los Angeles," based on employee surveys conducted by an independent research group for the Los Angeles Business Journal. Among large-sized companies, Mattel ranked 6th, having moved up from 9th and 13th in previous years, according to a press release.
Tenenbaum Announces CPSC China Office. August 4, 2009 — Inez Tenenbaum, chair of the U.S. Consumer Product Safety Commission, announced during a recent presentation in Hong Kong that the CPSC hopes to open an office in Beijing in October to aid cooperation with the Chinese government and businesses in ensuring that children's products meet U.S. safety regulations outlined under the CPSIA. TIA reported that the office, which is awaiting final approval from China, would be the Commission's first permanent presence abroad. Borders Adds Blue Orange, Alex and Creativity for Kids. August 4, 2009 — More than 500 Borders superstores across the country have received a makeover in the children's department with a major expansion of toys and games, including products from Blue Orange Games, Melissa & Doug, Alex-Panline, Playmobil, Scientific Explorer, LEGO and Battat. See the release for a listing of some of the specific toys and games available. The stores are also adding a children's specialist to help parents and other customers with their buying decisions. Borders recently announced the addition of Borders Ink Teen Shops to many of its superstores, which will house manga books, graphic novels, accessories and book series including "Twilight." "Twilight" and "Barack Obama" Among Scholastic Book Club Best Sellers. August 4, 2009 — Classics and new titles alike were hits with students during the 2008-2009 school year, as evidenced by the best seller list released by Scholastic Book Clubs. In the five core clubs, preK through grades 7 and up, favorites included HarperCollins' "Pinkalicious" and "Fancy Nancy Goes to Paris," "Pokemon: Ultimate Handbook," Amulet Books' "Diary of a Wimpy Kid: The Last Straw," Aladdin's "Barack Obama: Our 44th President," "Twilight" from Little, Brown Young Readers, Viking Press' "The Outsiders," and Candlewick's "The Tale of Despereaux." See the full list here. Spalding Basketball Hoops Recalled for Fall Hazard. August 4, 2009 — The U.S. Consumer Product Safety Commission, in cooperation with Russell Brands LLC, has announced a voluntary recall of about 1,700 Spalding In-Ground Basketball Hoops because the base bolts can fail and cause the hoop unit to fall over. No injuries have been reported. The hoops retailed at sporting goods stores this year across the country, including Academy Sports and MC Sports, for between $600 and $1,700. Models include the MC Sports Series, the Triple Eight Series and the Arena View.
Retailers Brace for Conservative, Yet Demanding, Holiday Season. August 3, 2009 — Almost one-third of shoppers expect to spend less this holiday season than they did last year, according to BIGresearch, yet lighter inventory loads at many retail stores could be a problem when consumers do start spending, USA Today reported, leaving the strongest retailers in a much better position in the coming months. An AMR Research poll showed that close to one-third of 650 retailers and consultants believe the majority of stores will run out of stock on key products, potentially leaving lots of bare shelves. BIGresearch projects conservative consumers will drive more shoppers to Black Friday and Cyber Monday sales. CPSC Issues Final Rule on Inaccessible Components. July 31, 2009 — Following comments received from industry associations, testing services and consumer groups, the U.S. Consumer Product Safety Commission today published an explanation of 16 CFR Part 1500 "Children's Products Containing Lead; Interpretive Rule on Inaccessible Component Parts," effective August 14, regarding law that says CPSIA lead limits "do not apply to component parts of a product that are not accessible to a child." As outlined in the complete ruling, the CPSC has clarified exclusion of the bite test requirement from use and abuse testing to determine accessibility; leaded components encased in fabric are considered inaccessible unless the part or whole is smaller than 5 cm, and as long as they pass use and abuse tests; and parts will be deemed accessible if contacted by any specified portion of an accessibility probe in testing. The CPSC will rule on the effects of product aging in regard to component accessibility if it believes such action is necessary after further review.
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