Here in the United States 8.7 million kids joined 63.6 million children in the last decade, according to Bureau of the Census 2000 figures, with more than four million births last year alone reported to the U.S. Department of Health and Human Services. With 26 percent of the total population under the age of 18, the 1990s marked the biggest baby boom since the 1950s and impacted the toy industry dramatically.

Now, considering both turbulent economic times and post Sept. 11^th emotions, all signs point to a very busy stork in the years ahead. Family is in fashion again, offering comfort to a nation coping with tremendous change and with more new moms college educated and employed, there's a boost in discretionary purchases. In addition, a trendy 'less is more' mantra has hatched a discriminating buyer willing to pay for quality merchandise.

A 10-year surge in the immigrant population has also impacted the preschool niche. Nearly one of five U.S. children, or 17 percent, are of Hispanic origin and more than one in three children are part of a minority group. Last year minorities added $1.3 trillion to the economy as they gained educational opportunities and increased their earning potential.

Grandparents are also spending big bucks on babies and not just on gifts. Of the six million baby boomers roughly 44 percent reportedly spend more than 100 hours a year as caregivers for their kids' kids. This graying population is buying its own baby care supplies and toys for the little tikes, a double dip that's got retailers drooling. Specialty retailers note that these soon-to-be seniors are more demanding of educational products and less penny pinching. As one toy store owner laughingly tells PLAYTHINGS, "you'd be surprised how many 2-month-old geniuses are out there."

Lisa Bridge, owner of The Toy Boat Store in Manteo, N.C., offers grandparents a 10 percent discount and pays close attention to the holiday "Best Bets" and "Top Toy" segments on television morning shows that grandparents tune in to and use as shopping guides. The nouveau older generation also tends to favor traditional toys like Schylling tops and metal jack-in-the-boxes, wooden blocks and the classic Radio Flyer wagons.

Children are getting older at a younger age but there's still a playing stage for all kids, says KB Toys buyer Chris Duquette. "Toys are SKUing much younger with computer software and technology toys, but the bottom line is still the element of fun." Fisher-Price remains the iconic market leader, says Duquette, with LeapFrog's innovative technology getting the mom thumbs-up. Hasbro Playskool's Air-tivity line (the key driver this fall is the Air-tivity Table, which activates spinning, twirling and fluttering features with cushions of air) is expected to generate some excitement, along with LeapFrog's My First Leap Pad.

Bridge notices an increased presence of parents at playtime. "People are hanging with their kids, and dads are around more," she observes, "and they're getting into the playing end of child rearing." At The Toy Boat Toy Store top sellers include Small World Toys' IQ Baby and Neurosmith's Jumbo Music Blocks. "Manhattan Toy has done some real innovative stuff," Bridge says. "Whoever their artists are, they design for the cool parent." Lauri manipulative toys are solid standards that Bridge always stocks.

When Mary Harp opened Treasure Island Toys in Edwards, Colo., three years ago she never imagined that the infant/ preschool categories would comprise 25 percent of her business. The demand has outweighed her attempts to attract other age groups as significantly. She's stocking up on what her customer wants and has doubled her display space to 64 sq. feet. Learning Curve's Lamaze line, International Plaything's Busy Car, Build a Boat and Carry Along Garage and the Lights, Camera & Interaction! wooden lines are quick to sell as was the Baby Einstein line before becoming a Disney property. "Now Disney plans to mass it to Wal-Mart and Kmart and what was a staple for me will be hard to hold onto," laments Harp.

Buttons and Bows in Richmond, Va., recently moved into a larger store that combines clothing and toys with a large infant and preschool section. Toy buyer Carol Stabrnow has ordered the Sunshine Symphony to complement an extensive Neurosmith line and continues to sell through Learning Curve's Lamaze and Early Years products. Whoozit picture album and octopus shaped stuffed fabric toy and Eli plush lamb from Manhattan Toy are on the shelf and out the door quickly. Riding vehicles for the teeny tikes, particularly the Kettler trike with push bar, sell regardless of high price points.

The bucks spent on baby at Playmatters' three locations in Pepper Pike and surrounding Ohio suburbs leave owner Michael Ziegenhagen bubbling. For this year's first quarter to date, his infant business represented eight to 10 percent of total sales in two locations despite holiday-depleted inventory. "With less than 10 percent of square footage allocated to infant and preschool, it's an amazingly strong area," he says. "About four years ago there was an infant toy war with a bunch of new items that fueled the category. Now the line extensions are strong."

At least 35 percent of Playmatters' infant/preschool business is grandparent-driven and the remainder gift giving. An introductory sale is in the $10 to $20 range but Ziegenhagen says it is not odd for a high ticket item to be bought as a group gift. Harley Davidson rockers from Kid Kraft and ride-on airplanes in the $100 to $200 range recently blew out the doors in a surprising three-day sales run.

Playmatters has many grandmas on staff who adore the category and help make a sale, although Ziegenhagen notes some standouts. Neurosmith's Sunshine Symphony and Jumbo Music Blocks pulled in strong numbers in 2001 with the Lamaze lines showing strength through consolidation. LeapFrog's Discovery Ball offers the educational bent that all parents crave for, he says, and he looks forward to this year's See & Learn Piano debut.

Kathe Kruse Blanket Babies and terrycloth soft toys and the Gault Play Nest are classic sellers of good value. Tummy Toy in Manhattan Toy's Whoozit line and Tomy's Lullabye Dream Show, an updated version of the original Lullabye Light Show, show sales promise. For the first time Ziegenhagen is carrying a half-dozen styles by Haba, distributed by T.C. Timber based on initial consumer response to the line.

Statistics don't paint the whole picture, however. Some store owners and buyers say last year's intensity has leveled off. "A year ago infant and preschool were the hottest categories going and everyone jumped in," says Ellie Bremer, owner of Sandcastle Toys in Holland, Mich. "It was too much and now that business has slowed considerably. Some brands that contributed to the surge (Lamaze, Neurosmith and Baby Einstein) became scattered in other outlets."

Bremer has consolidated her section by dropping some brands but still praises Neurosmith's Jumbo Music Blocks and all Lamaze titles. Applause Lovie blankets remain parent pleasers and Lego's infant line keeps up steady sales.

Despite the foot and stroller traffic, Child's Play in Houston, Texas, is down six percent in infant/preschool sales from last year, says owner Teresa Elliott who is now debating downsizing the section. Located in an affluent area, the 20-year-old store caters to an educated parent along with grandparents "who are either extravagant or living back in the times when a toy was $5," says Elliott. "What's even more interesting is they want an educational toy for a 2-month-old. Of course everyone's child is so bright and way beyond what is age appropriate, and it's hard to convince them otherwise."

As long as the market approach is toward kids learning more at a younger age, consumers will pay to get on the higher rung of the educational ladder, says KB Toys' Duquette, "and make sure their kid is not left in the dust."