Report: Toy Sales Strong In First Half Of Year

Retail toy sales have increased nearly 3% in the first half of the year, according to market research firm The NPD Group. The group says retail sales in the U.S. toy industry generated $8 billion in the first half of 2007, compared to $7.8 billion generated during the same time period in 2006.

The group credits seven super-categories for pushing growth in the sector: vehicles saw the most growth, increasing 17%. Infant/Preschool, Youth Electronics, Plush, Arts & Crafts, Building Sets and Games/Puzzles posted sales increases of 4%, 8%, 9%, 6%, 4% and 3%, respectively, over year-to-date 2006. Combined, these seven super-categories comprised over $4.5 billion in retail sales.

There were declines, per the consultancy, which says that of the 11 so-called super-categories, there were two sinkers, and one segment with flat sales versus last year. The two super-categories experiencing the largest declines were Action Figures & Accessories and Outdoor & Sports Toys, with both seeing decreases of 4%.

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But the consultancy said that Action Figures, which also saw declines in the period last year, will enjoy strong sales because of summer movie blockbusters targeting kids this summer.

NPD says sales of dolls were flat, which reverses last year's negative trend when sales for the first half of 2006 declined 4% versus first-half 2005 sales.

Anita Frazier, industry analyst, The NPD Group, says sales are being driven by innovations, with more stimulating toys piquing parents' interest as much as kids. "Taking this into account, along with strong sales during the first half of the year, the industry is heading into the all-important back half of the year in a very strong position," she says.

"The movie properties that are likely to positively impact the action figures category [are] "Spider-Man 3," "Fantastic Four: Rise of the Silver Surfer" and "Transformers."

The consultancy says that sales in all distribution channels have been strong so far this year, with department stores and major chains; electronics/video; mass merchant/discount stores and online sellers all experiencing dollar sales growth.

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