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Retailers optimistic for 2Q

Staff -- Kids Today, 7/14/2006 12:00:00 AM

In Kids Today's quarterly Market Pulse survey, conducted from late May to mid-June, nearly half of respondents expect their second-quarter 2006 sales to exceed sales in the comparable period in 2005. One-third said this year's second-quarter business would equal 2005 second quarter results.

With the first quarter firmly behind them, more than four-fifths of retailers said business was either better or the same as business in the first quarter of 2005. That reflects similar sentiments expressed in the prior edition of the Market Pulse, completed in mid-March, although more retailers in the recent survey said business was the same rather than up.

Consumer confidence in April and May mirrored the different experiences retailers have had, according to The Conference Board in its monthly survey.

Consumer confidence reached a four-year high in April, only to tumble more than six and one-half points in May. "Apprehension about the short-term outlook for the economy, the labor market and consumers' earning potential has driven the Expectations Index down to levels not seen since the aftermath of the hurricanes last summer," said Lynn Franco, director of The Conference Board's Consumer Research Center.

In juvenile specialty retailers' eyes, the future appears to be rosy. Three-fifths projected this year's third quarter will be better than last year's, with an additional 30% estimating sales will equal year-earlier business.

On the product front, kids retailers lined up behind a number of products they deemed exciting.

Retailers said the Bumbo Baby Seat by Bumbo S.A. was "selling like crazy" and "we stack the colorful boxes around our highchairs and they fly!" Bugaboo strollers also were popular, especially the "frog" and "cameleon" products and anything to do with Microsoft's Xbox. Twilight Turtle by Cloud b was another favorite.

Other products that drew accolades were the Bonavita conversion crib, the BabyBeReady diaper bag offered by Baby Dish, a velour dot blanket by Kids Line and Nurse 'n Sleep by Parents of Invention.

Not everyone was sold on current product offerings; one of out five responses was from a retailer who said they hadn't seen any exciting items.
Specialty retailers dominated this quarter's survey respondents, with nearly three-quarters operating one store. Southern retailers represented nearly half of the respondents, with an additional one-quarter residing in the Northeast.

About one-third of the retailers surveyed said their annual sales were in a range of $1 million up to $3 million, 31% had sales up to $500,000, 21% reported sales of $500,000 up to $1 million and 15% recorded annual sales over $3 million.

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