Hottest toys won't break the bank this Christmas

LONDON (ShareCast) - Parents won't have to win the lottery to pay for their children's Christmas presents this year as toymakers flood the shelves with affordable games and gizmos.

The Toy Retailers Association (TRA) this week revealed the toys it thinks most kids want to find in their stocking Christmas morning.

It split them into six categories and chose the 12 it predicts will fly off the shelves in each category before deciding on a definitive 'Hot Dozen'.

Toymakers have updated nostalgic characters and brands with a modern twist, according to chairman of the TRA, Gary Grant.

"With licensed toys combining the fun and familiarity of popular characters as well as collectable, pocket money priced toys making a big comeback this year, we are in for an affordable, family orientated Christmas," he said.

Parents will recognise many names on the list. Old favourites Monopoly and Lego feature, while others, like GO GO Pets Hamsters, the electronic interactive pets from Character, will be all too familiar come Boxing Day.

Go-Go-Pets

The company expects to sell about one million of them in the run up to the big day. High street retailer Argos has already named the "poopless pets" as the top toy for Christmas.

Steve Buckmaster, sales director at Esdevium Games, distributor for collectible Pokemon cards and Gogo's Crazy Bones figures, said cheaper items are selling well.

He also thinks this year's trend for Britons to holiday at home - the staycation - has boosted summer sales. In fact it's the company's best summer ever.

While some of the big names like Hasbro (NYSE: HAS - news) and Mattel (NASDAQ: MAT - news) have done OK, it's the innovative companies like Flair and Spinmaster, as well as old favourites like LEGO, that have done better and are having "flag-waving years".

LEGO

German toy maker Playmobil, whose Pyramid and Police Seaplane feature among the TRA's Top 12 construction toys, has enjoyed a record year, with sales up almost 30% on 2008.

"We believe that this Christmas parents are making smarter choices about the types of toys they are buying for their children," said Graham Brennan, Commercial Director Playmobil UK. "They are returning to the more traditional brands or those that can offer value for money."

Tabletop war games publisher Games Workshop, Britain's biggest toy manufacturer, saw profit jump to £7.5m in the 12 months to 31 May 2009, up from £1.1m a year earlier.

Model trains and racing cars group Hornby saw pre-tax profit fall from £9m to £6.1m in the year to March. The firm, which has a deal with the Brawn Formula One racing team, is due to publish interim results on 13 November.

Meanwhile, Early Learning Centre-owner Mothercare (LSE: MTC.L - news) this month revealed a 7% rise in second quarter sales, or 3% on a like for like basis, and issued a confident outlook for the rest of the year.

Families are expected to keep spending on their little ones this year despite being stuck in the longest recession on record. The children's market has been pretty recession-proof so far as mums and dads sacrifice their own presents in order to make it one to remember for the kids.

A survey last year by Playmobil found that two-thirds of parents refused to let the 'credit crunch' affect their ability to buy presents for their children at Christmas.

This year, girls are expected to ask Santa for Princess Peppa's Palace, also from Character, and Zapf's new Baby Annabel 2009.

Peppa Pig

For the boys, the TRA plumps for GX Racers Tightrope Terror Track set by Flair and the Battle Strikers Starter Set from Mega Brands (MB.TO - news) .

Tightrope Terrors

But parents might struggle to avoid tears on Christmas morning as industry experts warn of toy shortages.

"Retailers are nervous about Christmas and are unsure about how much stock they should commit to," Jeremy Healy, marketing director at Character Options told ShareCast.

"They're likely to have less stock in store than last year, which could lead to shortages of the most popular toys during the run up to Christmas."

This year's Dream Dozen

Bakugan Battle Pack, Spin Master (RRP £19.99) Battle Strikers starter Set, Mega Brands (RRP £9.99) Ben 10 Alien Force Kevins DX Action Cruiser, Bandai (RRP £29.99) Bendaroos Mega Pack, Spin Master (RRP £19.99) GO GO Pets Hamsters, Character Options (RRP £9.99) GX Racers Tightrope Terror, Flair (RRP £22.99) Kidizoom Multimedia Digital Camera, V-Tech (RRP £49.99) LEGO Games Minotaurus, Lego (RRP £17.99) Monopoly City, Hasbro (RRP £24.99) Princess Peppa's Palace, Character Options (RRP £39.99) Sylvanian Families Caravan, Flair (RRP £44.99) Transformers Movie 2 Voyagers Figures, Hasbro (RRP £22.99)