Babies "R" Us to sell Amy Coe-designed products

Mon Aug 11, 2008 5:00am EDT

By Aarthi Sivaraman

NEW YORK, Aug 11 (Reuters) - Taking a cue from Target Corp , retailer Toys "R" Us introduced the largest line of exclusive baby products at its Babies "R" Us stores, billing it as affordable, at a time when U.S. consumers are seeking value in everything from food to furniture.

The merchandise, from infant furniture such as cribs, to clothes and diaper bags, is designed by Amy Coe, who once designed baby products for Target.

The products will be available in more than 230 Babies "R" Us stores in the United States and on the baby merchandise retailer's Web site this month, Toys "R" Us said.

"It is very appropriate for current market conditions," said Toys "R" Us Chief Executive Jerry Storch.

"She (Coe) offers designs that are innovative, fun and different, but at an affordable price, which appeals to a broad customer base," Storch said in an interview.

Coe's playwear includes baby clothes that sell for between $6.99 and $21.99, while prices for cribs will start at $269, to Toys "R" Us said.

This is the first time Coe is designing furniture, according to Toys "R" Us.

Coe said in a separate interview that she no longer designs an active line for Target, though the discount retailer carries some items designed by her on its Web site under clearance prices.


The products arrive as U.S. consumers and retailers are set to head into the holiday shopping season, which accounts for a big portion of sales for many.

Toy companies get the lion's share of their annual sales in the run-up to the winter holidays.

But rising commodity costs have forced them to raise retail prices. Mattel Inc hiked prices on most of its products by mid- to high-single-digit rates in June, while Hasbro Inc has said it will increase prices in the mid-single-digit percentage from Sept. 1.

U.S. shoppers could have trouble digesting higher prices as they battle pricier food and fuel and flock to discount retailers such as Wal-Mart Stores Inc and Target to stretch their dollars.

Still, Toys "R" Us is not planning to raise prices on any of the products it is launching currently, Storch said. (Reporting by Aarthi Sivaraman, editing by Leslie Gevirtz)