Parents Fret, Toy Retailers Scramble

NEW YORK -- When Lisa Landry thinks ahead to holiday shopping for her 9-month-old son, Ari, her concern isn't which toy is most exciting. It's which is safest.

"I'll be looking for anything that won't harm our child," she says. "It may not be super-fun."

Already crossed off from her shopping list: toys made in China.

Retailers and toymakers are worried that many parents are reacting as Landry is to the string of recalls of Chinese-made toys. The stores and suppliers made the bulk of their manufacturing and wholesale orders months ago, when most of them envisioned row after row of toys from China on their shelves. More than 80 percent of toys sold in U.S. stores are made in China.

Now they're scrambling to make adjustments for customers who may want something else.

Toys R Us is looking at ways to increase its assortment of American-made toys and is expanding its selection of organic products, though most of the holiday ordering is in place, according to spokeswoman Kathleen Waugh.

"We just want to be sure that customers are comfortable with our assortment," she said. Waugh said Toys R Us had already planned to bring in more European brands, such as Brio, to differentiate itself from other retailers, but that merchandise strategy should gain more importance.

Waugh confirmed that the retailer is pulling a list of its sources of American-made toys as part of an overall assessment of its assortment.

In a statement, Laura Phillips, vice president and merchandise manager of toys at Wal-Mart, said she feels confident about current orders, but added, "We always are examining opportunities with suppliers who have capacity for U.S. production and will do so in seasons ahead."

Brands like Little Tykes and K'Nex, whose products are made in the United States, will be promoting their heritage with bigger product labels and advertising campaigns, company executives said.

The prospect of a difficult holiday season caps a year in which the $22.3 billion toy industry has been shaken by several high-profile recalls of Chinese-made products, from Hasbro's faulty Easy Bake Ovens to RC2's Thomas & Friends Wooden Railway wooden toy line, which contained lead paint.

The latest -- and considered to be the most damaging this year -- involved the worldwide recall of 1.5 million preschool toys from Fisher-Price, a division of Mattel, the nation's largest toymaker, and included popular Sesame Street and Nickelodeon characters.