Recalls won't stunt holiday toy buying: experts

By Karey Wutkowski

WASHINGTON (Reuters) - The latest recall of hot toy item Aqua Dots may evoke an emotional response in parents, but toy experts say it won't get in the way of fulfilling kids' holiday wish lists.

The recall on Wednesday of 4.2 million Aqua Dots craft kits, which had made Wal-Mart Stores Inc's list of top 12 Christmas toys, included the sensational aspect that the kits' beads may contain a chemical similar to a "date rape" drug. When the beads are swallowed, the chemical can cause unconsciousness, respiratory depression or seizures if swallowed.

The news injected a new dose of fear into a holiday season already wracked by recalls of millions of toys, most involving Chinese-made products containing excessive levels of lead paint. Aqua Dots is also made in China.

"It will certainly have an emotional impact for parents who have felt they were secure with the toys they were buying, but I really don't think it will have a broader impact," said toy industry analyst Chris Byrne.

"So much of the holiday buying is based on what children request."

The holidays are the most crucial time of year for toy makers and sellers. Nearly 50 percent of all toy sales are rung up in the fourth quarter alone, according to market research firm NPD Group.

This season is expected to face a trio of challenges -- the lack of a dominant toy driving shoppers into stores, an overall concern about constrained consumer spending, and the steady outpouring of recalls.

David Leibowitz, the managing director at Burnham Securities Inc, said the Aqua Dots recall had some headline-making aspects to it that will get parents sounding off about how they'll steer clear of certain types of toys.