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91ƵFlying off the shelves91Ƶ: Toys likely bright spot amid muted holiday retail season

Retailers say some inventory is already thin as people shop earlier than normal
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A woman looks at toys at a Toys 91ƵR91Ƶ Us store in Guelph, Ont. in this undated handout photo. While holiday spending is expected to be muted this year overall, toy retailers like Toys 91ƵR91Ƶ Us are expecting strong sales as parents aim to give kids a 91Ƶnormal91Ƶ holiday. THE CANADIAN PRESS/HO, Toys 91ƵR91Ƶ Us *MANDATORY CREDIT*

In a year plagued by a deadly virus, closures and cancellations, parents are eager to give their kids a Christmas like, well, every other.

Overall holiday spending is expected to be muted as the second wave of COVID-19 worsens, causing ongoing economic uncertainty and tighter travel and gathering restrictions. One report from Deloitte Canada says holiday spending is expected to fall 18 per cent, with one in three Canadians planning to spend less.

But retail analysts say the lack of normalcy in 2020 may a driver for strong toy sales. Much of the drop is tied to lower spending on travel, dining out and entertaining, and experts suggest parents will forgo gifts for each other or make other sacrifices to put toys under the tree.

91ƵPeople will want to do something to keep it as close to normal as possible, especially if you91Ƶve got kids,91Ƶ says Tim Sanderson, executive vice-president and national lead for retail with JLL Canada

In fact, the toy category has proven resilient throughout the pandemic so far.

Since lockdowns last spring, parents have scooped up 91Ƶboredom busters91Ƶ like puzzles, Lego, arts and crafts supplies, board games and outdoor activities.

Now retailers are expecting that trend to hold up during the biggest gift giving season of the year.

91ƵWith all kids91Ƶ events, camps and schools closing, parents have really tried to compensate to make sure that their kids are having fun or entertained or distracted,91Ƶ says Gail Banack, chief kids officer for Indigo Books & Music Inc.

91ƵWe91Ƶre continuing to see that trend going into the holidays.91Ƶ

With strong toy sales expected, retailers have rolled out sales early to keep shopping safe and physically distanced. Black Friday deals have been extended over the month, for example, to spread out shoppers and avoid long queues.

They91Ƶve also released hot toys lists and tips ahead of schedule, and are encouraging parents to shop early to avoid disappointment.

The messaging appears to be working. While there are fewer customers shopping in stores, there are also fewer people just browsing or 91Ƶshopping around.91Ƶ

91ƵThere has been a decline in traffic in our stores, but we91Ƶre seeing that offset by the average transaction value going up with larger basket sizes,91Ƶ says Sarah Jordan, CEO of Mastermind Toys.

She says the toy store chain, which focuses on educational kids91Ƶ toys, has also seen meteoric growth in online sales and curbside pickup orders.

91ƵCustomers are crossing off their holiday shopping list earlier than ever before to avoid crowds and last-minute trips to the stores,91Ƶ Jordan says. 91ƵThe bigger ticket items are flying off the shelves.91Ƶ

Indeed, the messaging from retailers and mail delivery services urging people to shop early is working 91Ƶ perhaps too well, for the procrastinators among us.

Retailers say some inventory is already thin as people shop earlier than normal.

Sean Williams, vice-president and chief merchant with Toys 91ƵR91Ƶ Us Canada, says the toy industry has been good at avoiding the Tickle Me Elmo toy shortages of years past 91Ƶ a plush children91Ƶs toy that sparked a holiday shopping frenzy in 1996 after it sold out.

But he says the pandemic is not something the industry could have prepared for.

91ƵThere91Ƶs been an insatiable demand on the consumer side for toys throughout the pandemic,91Ƶ Williams says.

He says early holiday sales numbers are 91Ƶfar exceeding our expectations.91Ƶ

91ƵThere are some items that are going to disappear and be much tougher for people to find for the big day.91Ƶ

With that in mind, executives from three of the country91Ƶs top toy retailers are naming the hottest holiday toys, giving some insight into what products could run low on inventory 91Ƶ or are already nearly sold out.

One of the most sought-after toys this season is a collaboration between plastic construction toy maker Lego and video game company Nintendo. Lego Super Mario Adventures lets users build real-life versions of the video game levels, like deserts and grasslands.

91ƵIt91Ƶs had a spectacular debut,91Ƶ says Mastermind91Ƶs Jordan. 91ƵIt is proving to be a popular item 91Ƶ if you want it, you should get it soon.

She adds: 91ƵIf there is a hit toy of the season, that is certainly it.91Ƶ

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The next hot toy is the Star Wars 91ƵThe Child91Ƶ Animatronic Edition 91Ƶ also known as Baby Yoda.

The Hasbro figure makes sound effects inspired by Disney Plus91Ƶs 91ƵThe Mandalorian,91Ƶ with a motorized head, ears and eyes.

91ƵIt just landed and it91Ƶs starting to fly off the shelf,91Ƶ Williams with Toys 91ƵR91Ƶ Us says.

Another hot item is expected to be Present Pets by Canadian toy company Spin Master.

The interactive pets unbox themselves, revealing one of two possible plush puppies programmed with more than a hundred sounds and actions.

91ƵFor parents that aren91Ƶt ready to buy a puppy, this is a great alternative,91Ƶ says Banack with Indigo. 91ƵIt91Ƶs really bringing together the innovation of the pet with this trend that we91Ƶve been seeing for years about unboxing.91Ƶ

Other hot sellers include Vtech91Ƶs Kidizoom Creator Cam, MGA Entertainment91Ƶs Na! Na! Na! Surprise Ultimate Surprise Rainbow Kitty and Spin Master91Ƶs Hatchimals Pixies Crystal Flyers toy.

But toy retailers say classic children91Ƶs gifts like games, puzzles and outdoor activities are also expected to post strong sales this holiday.

91ƵThat was something that really took off during COVID and has sustained itself,91Ƶ Banack says.

She says many parents are trying to limit screen time for children, increasing the appeal of some of the more traditional gifts.

91ƵI think one of the objectives of every parent going into the holidays is to get their kids off devices,91Ƶ Banack says. 91ƵWe believe books are always a great choice.91Ƶ

Brett Bundale, The Canadian Press


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