The Change Mariner

Baby Business Booms

Reuters:

As toy retailers struggle with weak sales and aggressive price cuts, the baby segment -- which includes not just toys but strollers, car seats and cribs -- appears to be booming.

Wal-Mart Stores Inc., the world's largest retailer, is rolling out a Web site (http://wwwbabyconnection.com) for new parents with news articles, product reviews, a baby registry, and a plethora of products for infants.

Educational toy maker LeapFrog Enterprises Inc. is introducing a line of infant items like a baby seat and activity center this year, and even Walt Disney Co. is capitalizing on the baby craze with its Baby Einstein line of toys, DVDs and learning aids.

Gap Inc.'s babyGap unit is consistently a top performer among the other Gap chains, which many say is due to fewer markdowns than in adult clothing stores.

"Parents are spending more on babies than ever before. The average age when people have their first child is much older than 20 years ago," said Jim Silver, publisher of Toy Wishes magazine. "When you have your first child at an older age, you have a lot more discretionary income.

Posted by Timothy Fredel at February 27, 2004 08:38 PM | TrackBack
Related Categories: Area - Social - Demographics | Industry - Retail | Quadrant - Social | Theme - 'Boomers Battle Aging'

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