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Return of the Jedi shoppers
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May 19, 1999: 2:32 p.m. ET
'Star Wars' opening expected to prove lucrative for movie operators, stores
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NEW YORK (CNNfn) - At long last, after more than two years in the making, "Star Wars" returned to the big screen Wednesday with fanfare and applause from coast to coast. Now retailers are waiting for the hype to make its way to their cash registers.
Since January 1997 when Fox Filmed Entertainment and George Lucas announced their intentions to begin work on a new "Star Wars" trilogy, all things "Star Wars" have been flying off store shelves. Fox Filmed Entertainment is a division of Fox Entertainment Group (FOX)
Now that the movie is finally rolling in multiplexes across America, analysts expect sales of "Star Wars" paraphernalia to increase even more, particularly among toy and video game retailers.
The shelves were stocked with goods waiting for eager kids and adults to begin grabbing those must-have "Star Wars" items. Ten-year-old Satomi Yamakoshi dragged her mom to Macy's department store in midtown Manhattan Wednesday for an R2D2 doll that beeps and blurps like the real thing.
"She had to have it," said an exhausted Yami Yamakoshi, who was one of thousands who lined up to see the popular flick during the wee hours of Wednesday morning.
All stocked up and ready to go, a display of "Star Wars" paraphernalia at Macy's
Judy Robinson, the department store clerk who rang up the bill for Satomi's $20 R2D2, said business was "brisk" following the release of the movie.
"We re-stocked some of the merchandise last night and we'll probably bring out more this afternoon," Robinson said.
Other retailers are hoping thousands more children and adults like the Yamakoshis will also fork over their cash for more "Star Wars" merchandise -- especially after seeing the film.
Toys "R" Us is one of them. The toy giant Monday reported better-than-expected fiscal first-quarter earnings, and indicated that toys tied to "Star Wars" will bolster its results for the second quarter.
Fans will line up for the movie first, line up for the merchandise second, analysts say
And FAO Schwartz is definitely another. John Eyler, chief executive of the fabled toy mecca, said the company has been working on its "Star Wars" plan of attack, so to speak, for close to three years, striking deals with product licensees and making sure the stores were filled to the brim with "Star Wars" merchandise.
"We obviously believe very much in the power of the Force," he said.
Eyler said Phase I of FAO Schwartz's "Star Wars" launch ended Tuesday night with the premier of the movie just after midnight. Phase II began Wednesday at its 5th Avenue store in midtown Manhattan.
"It's the most important release in our 137 years, and so far we're not disappointed," Eyler said.
Because FAO Schwartz is a privately held company, Eyler couldn't release sales figures. Still, he said sales of "Star Wars" merchandise alone "have more than doubled in the past two weeks, and that's before the movie even opened."
Theater operators, too, are banking on hype from one of the most anticipated movies ever to help slumping profits down the road.
AMC Entertainment Inc. (AEN) is one of them. Tuesday, it reported a wider-than-anticipated first-quarter loss, though made clear that it expects to make up for it in the second quarter with "Star Wars."
"While fourth-quarter results were disappointing, we're extremely excited about the upcoming film product, particularly 'Star Wars,'" AMC co-chairman Peter Brown said.
Advance sales of "Star Wars" tickets already have reached around $100 million, according to some guesstimates of industry experts.
AMC shares fell 7/16 to 18-9/16 Tuesday.
"Star Wars Episode I: The Phantom Menace" opened at 12:01 a.m. Wednesday at approximately 2,500 different theaters throughout North America. Some analysts estimate the movie could bring in as much as $475 million in U.S. box office receipts -- including a record $100 million in the first weekend alone -- and as much as $1.5 billion overseas.
--- by staff writer M. Corey Goldman
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