DISCUSSION

Retailers Tickled Pink Over Elmo's Return

Written by George Anderson

By George Anderson

Elmo's back and retailers are tickled pink over the prospects of stocking what promises to be one of the hottest selling toys of the holiday season.

T.M.X. (the X stands for extreme) Elmo, the latest in the line of Tickle Me Elmo line of toys, is breaking new ground according to toy industry watchers.

"When I originally saw a picture of how it moves, I really thought there were some sort of wires, like a puppet, moving it," said Jim Silver, editor-in-chief of the trade publication Toy Wishes. "We've never seen a stuffed animal that has this type of movement."

Executives at chains including KB Toys and Toys R Us have said preorders for the new Elmo have exceeded expectations.

Rich Ryan, a Toys R Us buyer of preschool toys, told MarketWatch, "We've seen a lot of success with Elmo over the years. We expect it to be one of the best sellers chain-wide."

Mr. Silver said consumers should plan to shop early if they want to get their own extreme Elmo in time for Christmas. "If there are Elmos around December first, I will really be surprised," he said.

Elmo is already a hot seller with consumers lined up outside of stores across the country to buy the newest version. The toy, according to a Chicago Sun-Times report, is already being sold on eBay for $200. The toy's suggested retail price is $39.99.

Discussion Questions: Considering the demand for the product, should retailers selling T.M.X. Elmo sell the toy for a price higher than its suggested $39.99 retail? What would happen if the item were to be sold at a premium to the $39.99 price?

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