Retailers Hope to See Summer Blockbusters
Let the force be with retailers this summer.
After enjoying a sales bonanza last year from everything “Star Wars,” merchants across the country, particularly toy sellers, are hoping that this summer’s blockbuster films will have at least the same power to move an avalanche of movie-related products including Superman suits and pirate swords with sound effects.
A slew of tie-in merchandise has already been released tied to summer films including Disney-Pixar’s “Cars,” Walt Disney Co.’s “Pirates of the Caribbean: Dead Man’s Chest,” and Warner Bros.’ “Superman Returns.” There are also game and apparel tie-ins to “The Da Vinci Code,” based on Dan Brown’s best-selling novel, but the bulk of related merchandise sales are coming from all the book spinoffs, including religious and art books.
“Last year, it was all about ‘Star Wars,’ ” said Ernie Speranza, chief marketing officer at KB Toys Inc. This summer, he’s betting that “Cars” and the “Superman” and “Pirates” films outperform the final installment of George Lucas’ space saga.
“Cars” is supported by such items as track sets, racing car beds and animated talking cars. Tie-ins for the “Pirates” sequel include action figures, swords with sound effects and T-shirts with skull motifs. Fans of “Superman Returns” can buy radio-controlled 16-inch superheroes that soar as high as 300 feet, inflatable Superman suits and fashion items such as jewel-encrusted shirts and handbags.
Officials at KB Toys and Toys R Us Inc. report strong early sales of the movie-related goods, which started to appear in stores in early April. And the momentum should pick up as the films open in theaters over the next few weeks. What should help is that the movies are expected to attract diverse audiences.
But the business of movie merchandising is tricky. Success at the box office doesn’t guarantee success in the stores, said Sean McGowan, an analyst at Harris Nesbitt. McGowan recalled how retailers had been burned by merchandise associated with such films as “Godzilla,” “Independence Day” and “Men in Black.” That has caused retailers to become more cautious, betting on fewer movies. And consumers are becoming harder to sell to, shrugging off basic apparel for trendier items, for example.
McGowan said retailers would face a big challenge in trying to beat last year’s “Star Wars” merchandising power.
Lucasfilm Ltd.’s “Star Wars: Episode III Revenge of the Sith” generated $3 billion in merchandise sales worldwide at stores, company spokesman John Singh said. That figure surpassed the $2 billion in worldwide retail sales generated from “Episode I The Phantom Menace,” released in 1999, and $1.2 billion in sales tied to “Episode II Attack of the Clones,” in 2002.
But suppliers and film merchandising executives are optimistic, saying they’ve worked hard to appeal to consumers’ tastes.
“It is a great summer when you look at it from a box-office standpoint,” said Eva Steortz, a vice president in Disney’s consumer products division. She said the movies reach out to different consumer segments.
“ ‘Star Wars’ is a great film, but you know who your audience is.” With these new movies, she said, one has to “garner a little more consumer insight.”
Steortz noted that Disney embraced a broad merchandising strategy with Pixar Animation Studios’ “Cars,” which is slated to hit theaters June 9 and is expected to attract a core audience 2 to 6 years old. The company, which recently acquired Pixar, signed up 350 suppliers to produce products including bedding and children’s clothing.
Among the highlights are a $34.99 Fast Talkin’ McQueen vehicle that does 15 tricks, named after the main character, and $24.99 racing tracksets from Mattel Inc., the main supplier of toys related to “Cars.” Mattel is also producing most of the toys for “Superman Returns.” Disney’s electronics division is offering a $159.99 TV-DVD combo shaped like a car.
For the sequel to 2003’s “Pirates of the Caribbean: Curse of the Black Pearl,” opening in theaters July 7, Disney is targeting 6- to 9-year-olds and is focusing on toys that encourage children to act out scenes from the movie. From Zizzle, the main toy supplier for the movie, there are mill wheel sets with collapsing ladders and pistol and belt sets with blast sound effects.
Disney’s merchandising team is also reaching out to older customers with apparel and accessories that feature trendy graphics, capitalizing on the skull as an emerging fashion icon.
The merchandising executives behind “Superman Returns,” which is to hit theaters June 30, are also aiming to attract both children and adults. Toys and children’s apparel related to the film target 5- to 11-year-olds, but Warner Bros. is also looking to woo adults and teens with apparel such as $85 rhinestone-encrusted tank tops and $300 cashmere sweaters with the superhero’s “S” logo.
“The S shield has never gone out of fashion. There is this coolness factor that will make it very desirable,” said Brad Globe, president of consumer products at Time Warner Inc.’s Warner Bros.
Merchandisers are looking well beyond the summer and plan to refresh offerings tied to the DVD releases during the holiday season, as well as to sequels.
Zizzle is set to release more “Pirates” toys this fall in time for the DVD release -- a $50 Black Pearl ship, which has cannons that fire, as well as a $300 pinball machine that has working lights and sounds. And the company is developing toys for the third installment of “Pirates,” which is slated to be released next year.
