Wal-Mart to sell toys tied to new DreamWorks movie

NEW YORK (Reuters) - Wal-Mart Stores Inc (WMT.N) is optimistic about demand for toys in 2010, the world's largest retailer told Reuters on Sunday at the Toy Fair, where it plans to unveil a new line of toys based on a new DreamWorks movie.

"I think we are seeing signs of optimism and that's certainly reassuring," Laura Phillips, Wal-Mart Stores Inc's (WMT.N) vice president of toys, told Reuters in an interview.

Wal-Mart said the new toy line, based on the DreamWorks Animation SKG Inc (DWA.O) movie "How to Train Your Dragon," will hit store shelves on March 1.

The line -- made by privately held Spin Master Limited -- will include action figures, dragons, Viking play sets and role play toys and is priced between $5 and $30.

"When there's something new and different that really connects with the customer, absolutely they are back," said Phillips, who refused to shed more light on their holiday sales numbers ahead of its earnings report on Thursday.

For 2010, Phillips said the retailer was "excited" about toys related to movies like "Toy Story 3," How to Train Your Dragon," "Iron Man 2," and "Rapunzel" as well as tech toys like Wowwee's "Paper Jamz" cardboard electric guitar that makes music with touch-sensitive electronic sensors, and classics like Lego.

The retailer, which offered more than 100 toys including Barbie dolls and board games for $10 each in the 2009 Christmas shopping season, plans to stay competitive in pricing and repeat similar programs to attract shoppers in the 2010 year-end holidays.

It has already placed orders for the coming season.

(Reporting by Dhanya Skariachan; Editing by Richard Chang)