More Than Two In Five Toy Purchasers Spending Less on Toys This Holiday Season

ROCHESTER, N.Y. – November 20, 2008 – Last year at this time, toy manufacturers were in a panic as a wave of recalls hit the news regarding toys from China. Looking back, over four in five Americans (83%) recalled reading, hearing or seeing anything about these recalls last year, but almost nine in ten Americans (88%) and three-quarters of households with children (75%) say they did not have any toys that had been impacted.

These are some of the results from The Harris Poll®, a new nationwide survey of 2,303 adults, surveyed online between October 20 and 27, 2008, by Harris Interactive^®.

This year the issue is not recalls that have toy manufacturers and retailers in a bit of a panic, but rather the economic slowdown, and there will be changes in purchasing from last year:

• Just under half of Americans (47%) say they will purchase toys as gifts this holiday season while 41% say they will not. Among households with children, seven in ten (71%) will purchase toys this holiday season, but one in five (21%) say they will not;
• Among those who will purchase toys this holiday season, a plurality (44%) say the amount they will spend for these purchases will be less than last year, including almost one in five (18%) who say it will be much less than last year. Just over one-third (36%) of toy purchasers say they will spend about the same as last year for toys while only 16% say they will spend more than last year;
• Looking at toy purchases by income level, a majority of those who will purchase toys and have a household income of less than $35,000 (52%), between $35,000 and $49,999 (50%), and between $50,000 and $74,999 (51%) say the amount they will spend this year will be less than last year. Among those with a household income of over $75,000, 36% say they will spend less than last year. But only one in five (19%) of this higher income group are spending more on toys, as 41% are keeping their toy spending amounts the same as last year;
• When it comes to what people will be buying, just under half (47%) will be purchasing children’s books, while two in five (38%) will purchase games for consoles, and one-third will purchase board games (33%), arts and crafts (33%) and dolls (32%). Additionally, one-quarter of toy purchasers say they will purchase handheld electronic games (25%) followed by building blocks and bricks (23%), sports equipment (22%) and game consoles (16%);
• Men and women have different toy purchase plans. Women are more likely to purchase children’s books (52% vs. 40%) and arts and crafts (37% vs. 28%). Men, on the other hand, are more likely to purchase sports equipment (31% vs. 15%) and handheld electronic games (30% vs. 21%).

According to Peter Shafer, Vice President of Harris Interactive’s Youth Center of Excellence, "Toy manufacturers can’t catch a break. Holiday toy spending last year was impacted by the toy recall in China, and this year it is the global economic downturn. But kids being kids are still lobbying their parents for their favorite toys. Kids tell Harris they want toys that are fun to play with and encourage creativity. Parents, even though spending for toys may be less, have heard the message and are shifting their purchases towards those favored toys."

According to Regina Corso, Director of The Harris Poll, "With economic conditions continuing to deteriorate parents and toy makers alike are taking appropriate actions. Parents have to readjust their budgets, mostly downward, when it comes to toy buying. Retailers, as they react to anticipated sluggish sales, will also be taking corrective action to carry the products that parents want, at the correct price point."

"Last year at this time a series of children’s toy recalls had been announced covering more than 20 million toys sold under a variety of well-known brand names. Do you recall reading, hearing or seeing anything about these toy recalls last year?"

Base: All adults

Note: Percentages may not add up to exactly 100% due to rounding

"Did you have any toys in your household that have been impacted by the recall?"

Base: All adults

Note: Percentages may not add up to exactly 100% due to rounding

"Which of the following actions did you take in response to the toy recalls last year?"

Base: Have recalled toys or not sure

Note: Multiple responses allowed

"Thinking now of this holiday season, are you planning on purchasing toys as gifts this year?"

Base: All adults

Note: Percentages may not add up to exactly 100% due to rounding

"Compared to the amount you spent for toy purchases last year, will the toy purchases you make this year be…?"

Base: Will purchase toys

Note: Percentages may not add up to exactly 100% due to rounding

"What types of toys will you purchase this year?"

Base: Will purchase toys

Note: Multiple Responses Allowed

This Harris Poll^® was conducted online within the United States between October 20 and 27, 2008, among 2,303 adults (aged 18 and over). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online.

All sample surveys and polls, whether or not they use probability sampling, are subject to multiple sources of error which are most often not possible to quantify or estimate, including sampling error, coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments. Therefore, Harris Interactive avoids the words "margin of error" as they are misleading. All that can be calculated are different possible sampling errors with different probabilities for pure, unweighted, random samples with 100% response rates. These are only theoretical because no published polls come close to this ideal.

Respondents for this survey were selected from among those who have agreed to participate in Harris Interactive surveys. The data have been weighted to reflect the composition of the adult population. Because the sample is based on those who agreed to participate in the Harris Interactive panel, no estimates of theoretical sampling error can be calculated.

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