• Los Angeles Times, Tuesday, July 14, 2009 10:33 AM

Thanks to blockbuster movies with popular action heroes, sales of merchandise with a cinematic hook could reach an all-time high this year, Dawn C. Chmielewski reports. "People are thinking if everything goes well, 'Transformers' could rival 'Star Wars' as the single biggest-selling property," says John Taylor, a video game and toy analyst for Arcadia Investment. "With 'G.I. Joe' on top of that, you've got a shot at breaking $700 million."

But with so many special effects-driven films to choose from, retailers are getting picky about which properties they'll back, particularly with consumers cutting back on discretionary purchases. Stores are also devoting more real estate to products such as video games.

Wal-Mart has formed an entertainment council to determine a year or two in advance which upcoming films offer the greatest potential to bring traffic to it stores, and how best to assemble a line of toys, games, bedding, clothing and food to seize upon that opportunity. Representatives from various departments use a ranking system that places a premium on family-friendly entertainment, Chmielewski writes.

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