Parents Fret, Toy Retailers Scramble

By Anne D'Innocenzio
Associated Press
Saturday, August 11, 2007

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.

The actions are part of a slew of recalls of Chinese-made products that range from faulty tires to poisoned pet food. But with children's lives at stake, the issue becomes extremely emotional, experts say.

The Toy Industry Association is working with Congress and the Consumer Product Safety Commission to help establish legislation that will make testing mandatory for all toy products, according to association chairman Daniel Grossman.

There is no law now that requires toy testing, although toymakers adhere to voluntary standards and big retailers also do their own testing.

Tighter controls will add more costs to makers, which could result in higher prices at the stores.

"I would pay up to 50 percent more for something that I knew was well-made and safe," said Amy Lemen, 41, the mother of a 5-year-old daughter, Audrey. The Austin resident, who did not have any of the tainted toys, said the latest recall will make her focus more on eco-friendly toys. Lemen may also buy fewer toys this holiday season, investing instead in experiences such as taking her daughter to Sea World in San Antonio.

For now, toy companies that make their goods in Europe or in the United States are clearly benefiting from consumers' worry. Toy experts say that European makers adhere to higher safety standards than in the United States. And even though European toymakers are shifting some of their production to China, the products are required to be tested before they reenter the country of origin.

Michael Araten, president of K'Nex Industries, known for its plastic construction toys and the exclusive distributor for Brio in North America, said that deliveries to stores are up 25 percent in August. He expects a 30 percent increase this holiday season, he said.

One online seller of European wooden toys, Oompa Enterprises, has fielded hundreds of calls from concerned consumers since the Fisher-Price recall, according to chief executive Milanie Cleere. She estimates those calls are coming in at about four times the volume they did before the trouble began.

She said she has personally spoken to several callers, including Landry, the mother from New York City, assuring them she carefully tests products her company sells.

Some experts believe the shift of focus from a toy's popularity to its safety could lead to new criteria among parents.

"This is the time consumers have to look at the individual needs of a child -- age, skills and interest -- when buying toys and not just buy what the buzz or hot toy list is about," said Marianne M. Szymanski, publisher of Toytips.com, a toy guide.