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US Toy Industry Grew 2% in 2010

Toy Industry Experiences 2 Percent Growth

PORT WASHINGTON, NY, January 27, 2011 According to leading market research company, The NPD Group, U.S. retail sales of toys generated $21.87 billion in 2010 compared to $21.46 billion in 2009, an increase of 2 percent. Strong fourth quarter (Oct.'10 - Dec.'10) sales, which experienced an increase of 3 percent over fourth quarter 2009, saw revenues top $10.2 billion, representing close to half of the year-end total, with December 2010 generating $5.64 billion, a 4 percent increase over December 2009.

Looking at revenue sales performance across super-categories, Plush and Building Sets saw the most significant increases at 18 percent and 13 percent, respectively. Outdoor & Sports Toys realized an increase of 9 percent, while Dolls and Infant/Preschool both experienced increases of 6 percent. Youth Electronics, Action Figures/Accessories/Role Play, and Games/Puzzles super-categories experienced the most significant declines when compared to 2009, at 22 percent, 15 percent, and 9 percent, respectively.

Unit sales mirrored revenue sales trends in most respects, with the largest increases coming from Dolls, Building Sets, and Outdoor & Sports Toys super-categories showing respective increases of 23 percent, 13 percent, and 12 percent, while overall unit sales were up 4 percent.

Retail channel performance was mixed, with Online/Internet sales experiencing the most explosive revenue growth over 2009 at 22 percent. The Toy Stores and Food/Drug channels also saw growth of 4 percent and 6 percent, respectively. The only channels to experience loss in share were Department/Major Chain and Mass Merchant/Discount, with respective declines of 11 percent and 2 percent.

Top properties for the year based on total dollar sales (in alphabetical order) included Barbie, Crayola, Nerf, Star Wars, and Toy Story. Licensed toys represented 25 percent of total industry sales in 2010. Based on dollar sales, Cars: The Movie, Disney Princess, Star Wars, Thomas and Friends, and Toy Story topped the list of 2010's best-selling licensed properties (in alphabetical order).

"Looking forward to 2011, there is much optimism coming off the strong holiday performance for toys," said Anita Frazier, industry analyst, The NPD Group. "From our KIDS tracker, we know that toys is one of the top categories kids are spending their holiday gift cards on. With an improving economy, several movie releases, and a wide array of innovative product coming to market, 2011 looks to be another solid year for toy sales."

About The NPD Group, Inc.

The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us, visit http://www.npd.com/, or follow us Twitter at https://twitter.com/npdgroup.

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