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Parents seek toys from box stores

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In the 1988 movie “Big,” audiences fell in love with the palatial toy store FAO Schwartz while watching Tom Hanks and Robert Loggia frolic on an oversized piano keyboard. Last holiday season, the store’s parent company, FAO Inc., filed for bankruptcy, as did KB Toys Inc. Walt Disney Co. has decided to discontinue its line of Disney Stores, which had sold licensed Disney products, clothing and toys.

In the blame game, fingers are being pointed at Wal-Mart Stores Inc., Toys ‘R Us and the Internet. Meanwhile, consumers are left wondering how the conflict will play out. Disney’s Valley West Mall location closed in January when its lease expired. Now KB Toys plans to close nearly of third of its locations nationwide, and seven of its eight stores in Iowa, including its shop in Valley West Mall. It will continue to operate 750 stores in the United States, Guam and Puerto Rico.

The reason is, in part, because of parents such as Marla Kruger, who has eight children and several grandchildren, and says she’s not picky about where she buys toys.

“I like KB, Toys “R” Us and Wal-Mart,” she said. “I buy in bulk and look for the best low price.”

Kruger said she found a lot of good toys in Hy-Vee after Christmas.   Katherine Willcox says she used the Internet to find discontinued toys, but most she buys as discount stores like T.J. Maxx. Parent Cynnamon Brown recently went to Wal-Mart to buy toys for her church. She said when shopping for charity she tries to stretch her dollars, but when buying her own family, she’s more likely to shop at Target for the store’s “convenience and quality.”

In the 2003 holiday season, discount retailers won the majority of sales, led by Wal-Mart, which has a 21 percent share of the toy market, according to a recent Associated Press story. What customers lose in variety and atmosphere, they gain in low prices and the ability to buy toys as they purchase groceries, clothes, shampoo and have the oil changed in their car.

“Wal-Mart is a very important part of the toy business, but toymakers don’t want its low-pricing strategies to devalue their brands and their business — and put more toy retailers out of business,” Jim Silver, publisher of industry magazine Toy Book told the Associated Press.

Toy makers, who see retailers as key to their profits, are planning to deliver fewer of their products to Sam Walton’s empire. Instead, they will hold exclusive product launches at chains like Toys “R” Us.

Warehouse-like behemoth Toys “R” Us is favored by many parents for the variety of products it offers. The company is working to increase its market share by appealing to Internet shoppers. In August of 2000, the company entered into an alliance with a pillar of Internet sales, Amazon.com.

“I do the majority of my toy shopping at Toys “R” Us,” said Jan Berg Kruse recently while shopping with her 10-year-old son, Harrison. “I like the convenience and the large selection,” she said.

They came to the K.B. in Valley West Mall to find a toy Toys “R” Us didn’t offer. K.B. employees said they don’t know when the store will close, but the store is offering steep discounts to clear out its stock. Harrison was not disappointed to see the store go.

“I kind of like it, because its cheaper now, so you can get more,” he said.