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Rescue-hero toy sales surge
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October 8, 2001: 2:36 p.m. ET
Demand for the toys said to jump since Sept. 11 terrorist attacks.
By Staff Writer John Chartier
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NEW YORK (CNNmoney) - The Sept. 11 terrorist attacks on the United States have spurred a surge in demand for toys depicting rescue heroes, prompting toymakers and retailers to increase production and shift their focus for the upcoming holiday season.
Mattel Inc. (MAT: down $0.25 to $16.40, Research, Estimates), the nation's No. 1 toymaker, reportedly has increased production of its Fisher-Price unit's Rescue Heroes line of action figures featuring a firefighting character named Billy Blazes, including a special line begun last year outfitted with New York City Fire Department uniforms and gear.
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Fisher Price is donating proceeds from Billy Blazes FDNY figures to firefighter fund (Source: Fisherprice.com) | |
All proceeds from sales of the FDNY figures are being donated to the FDNY's Fire Safety Education Fund.
And there has been renewed popularity in classic G.I. Joe toys, manufactured by No. 2 toymaker Hasbro Inc., (HAS: down $0.12 to $14.97, Research, Estimates), as talk of military retaliation against the terrorists built up through Oct. 7, when the United States struck its first targets.
The renewed interest began soon after terrorists hijacked four commercial jets and crashed two into New York's World Trade Center and one into the Pentagon, leaving more than 6,000 people missing or dead. The fourth plane crashed in a Pennsylvania field after passengers apparently overcame the terrorists.
Many children and parents, moved by daily images of burly rescue workers sifting through the immense rubble at the shattered World Trade Center, are looking for toys that emulate their new heroes. They also represent less violent options to such popular items as some video games, analysts said.
"You could make the case that maybe some play patterns trend toward the more wholesome, more palatable toys. It resonates more with children given what we may see, or what we're hearing right now," said Melissa Williams, a retail analyst with Gerard Klauer Mattison Inc. who follows the toy industry.
Others agree.
"There definitely will be an uptick in sales of these types of items, " said Diane Cardinale, a spokeswoman for Toy Manufacturers of America Inc., an industry trade group. "People are getting a new respect for firefighters and police officers."
A spokeswoman for Toys "R" Us Inc. (TOY: down $0.21 to $18.31, Research, Estimates), the nation's No. 2 toy retailer behind Wal-Mart Stores Inc. (WMT: down $1.38 to $51.02, Research, Estimates), declined to comment on the trend other than to say rescue hero items such as Billy Blazes, G.I. Joe and Tonka trucks and earth moving equipment, have picked up since the attacks on the U.S.
A representative of KB Toy and Hobby could not immediately be reached, but the company's e-commerce site featured many rescue hero items.
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G.I. Joe toys are regaining popularity in the wake of terrorist attacks (Source: Hasbro.com) | |
However, the surge is not expected to have a significant effect on holiday sales, which analysts predict will come in sharply lower than a year ago because of a slowing economy and military action in Afghanistan.
The National Retail Federation predicts 2001 holiday sales will be 2.5 to 3 percent higher than last year, a much smaller gain than the 5 percent growth posted the previous year.
Toy sales also are expected to increase just 2 or 3 percent from last year, according to TMA figures.
Just what portion of those sales is likely to come from rescue hero toys remains unclear, but most agree there will definitely be an uptick.
"It's just a natural fit for consumers to be buying these types of toys for their children, both boys and girls," said Audrey Guskey, a consumer trends at Duquesne University in Pittsburgh. "This holiday season is going to be a tough one, but I think there are certain types of things that are going to be popular, such as hero action figures."
Video games still are expected to be strong sellers since they appeal to an older audience, but more traditional toys, such as Barbie, board games and Tinker Toys, which have enjoyed a resurgence in the last few years, also are likely to be popular as parents look for non-violent alternatives, Williams said.
Toy manufacturers and retailers have been struggling since January along with most other consumer-related companies as Americans curtailed spending as they watched the economy slow. Thousands of layoffs, rising fuel prices and a volatile stock market.
On July 13, Toys "R" Us warned that second-quarter results would fall sharply below Wall Street forecasts in part because of a challenging economic environment. The company also is in the midst of a major restructuring that includes remodeling many stores.
And that's going to affect the kinds of gifts people give during the holidays. But to what degree is not entirely clear.
"Its really too early to tell and most consumers haven't even started their holiday shopping yet," Cardinale said. "It's obvious there will be an effect here in the northeast region."
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The sudden decline in popularity of such blockbuster toys as Pokemon, Star Wars and the Razor scooter, a common occurrence in the trend-driven toy industry, coupled with the slowing economy has hurt toy merchants.
The lull between movies heavily tied to toys also has taken a toll on toy industry earnings over the last year. Analysts say rescue hero toy sales certainly will help bolster the holiday season. However, with most products going for $10 or less and the atmosphere of war that has subdued the consumer, the impact of such items on profits likely will be limited.
"Clearly consumer spending poses a challenge, but there's reason to believe consumers will spend on toys," Williams said. "People are in the malls. It's just a question of how much they're spending." 
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