Wal-Mart rolls out early holiday toy push

By Nicole Maestri

NEW YORK (Reuters) - Christmas started in September this year -- at least in the toy aisles at Wal-Mart Stores Inc -- even as retailers worry that parents may approach toy shopping with trepidation this holiday season after massive numbers of toys were recalled in recent months.

So to jump-start holiday shopping, the world's largest retailer began cutting prices on toys in its stores on Sunday, September 30, and will be introducing special price cuts on hot toys each week during October.

"It's a little bit earlier and a little bit deeper," Laura Phillips, Wal-Mart's chief toy officer, said of the timing of this year's holiday toy promotions and the size of the price reductions.

For instance, this weekend Wal-Mart (WMT.N: Quote, Profile, Research, Stock Buzz) cut the price on the Fisher-Price Kid Tough Digital Camera to $54.88 -- down from $64.88. The camera, aimed at children ages 3 and older, was one of last holiday season's hottest selling items.

The price cuts come as U.S. retailers gear up for the all-important holiday shopping season amid an uncertain economic environment.

Last week, Lowe's Cos Inc (LOW.N: Quote, Profile, Research, Stock Buzz) issued an earnings warning, while Target Corp (TGT.N: Quote, Profile, Research, Stock Buzz) slashed its September sales forecast, fueling concerns that the holiday shopping season will be one of the weakest in years.

The National Retail Federation has already forecast that U.S. holiday sales will rise at their slowest pace in five years.

The price cuts also come after millions of toys bearing the "Made in China" label were recalled in recent months mainly due to unsafe levels of lead paint. Lead paint has been linked to health problems in children, including brain damage.