Toy trouble

Yesterday's massive toy recall by Mattel Inc. due to safety concerns about toys made in China -- the second major toy recall this month -- will probably affect the holiday shopping season.

Retail analysts say it will be a challenge for merchants to keep some toys in stock and that certain items won't be available at all, given the size and scope of a recall that now totals more than 9.75 million products in the United States, 18.6 million globally. Yesterday's recall by Mattel, the largest one to date, included Polly Pocket play sets, Batman action figures, and Barbie dolls, due to dangers posed by lead paint or tiny magnets that could be ingested. Some of the toys were sold several years ago.

Anxious parents say they plan to change their shopping habits to avoid major brands -- from Fisher-Price to Thomas & Friends -- that have recalled toys over the past few months.

"This whole thing makes me nervous, and I would rather find something else to give to my girls for birthdays and Christmas this year," said Sarah Larsen, a mother of two from Salem, N.H. "It used to be that a toy store was the one 'safe' place where I could bring my 3-year-old daughter, Grace, and let her pick out something special, knowing that as long as it was age-appropriate, she would have fun with it."

The recalls come at a bad time for the toy industry, which has been struggling in recent years as children have increasingly favored electronics over traditional toys like those sold by Mattel, the world's biggest toymaker. Yesterday's recall is also the latest to involve products from China, which makes the majority of toys sold worldwide.

Earlier this month, Mattel's Fisher-Price brand recalled more than 1 million preschool toys, including Elmo and Dora and Diego characters, which were made in China. In June, RC2 Corp. recalled more than 1 million Thomas & Friends wooden railway toys due to high lead content on paint coloring the toys. Those toys also came from Chinese factories.

"We certainly are aware that there is a consumer confidence issue at the moment, and Toys 'R' Us and all of our vendors will be working together to regain the trust of the consumer," said Toys "R" Us spokeswoman Kathleen Waugh.

Over the past year, Toys "R" Us has stepped up its own safety initiatives, including the testing of private label train sets and other RC2 trains after some Thomas & Friends products it manufactured were recalled in June. The Consumer Product Safety Commission said no injuries had been reported with any of the products involved in the recall yesterday. Several injuries were reported in a Polly Pocket recall last November.

Mattel took out full-page advertisements in some US newspapers yesterday to apologize to parents. The company also set up a telephone hot line to address consumer concerns -- 888-597-6597 and 800-916-4498. Toys recalled yesterday also include Sarge cars from the movie "Cars," Barbie and Tanner play sets, and Doggie Day Care play sets. Mattel said it's too early to tell whether the recall will affect holiday sales.

Scott Krugman of the National Retail Federation said toy retailers are going to have to make adjustments and those merchants that rely heavily on the recalled Mattel lines are going to make a run on other toys to fill gaps.

"There will be an impact this holiday season. It's hard to say how big. But it's obviously another challenge for retailers," he said.

During a conference call yesterday, Mattel chief executive Bob Eckert said, "Our reputation has been built over the last 62 years here at Mattel. Consumers understand that no system is perfect."

The recalls stem from Mattel's increased investigation and ongoing testing procedures following the recall of select Fisher-Price toys earlier this month. The products with lead paint problems resulted from a Chinese subcontractor using paint from an unauthorized third-party supplier, instead of paint supplied directly from the contractor.

Mattel said it has implemented more rigorous testing of toys as they are being manufactured and before finished products reach retailers' shelves. The recalled toys will be disposed of in a "responsible manner," the company said.

Monica Tang, an analyst with consulting firm Kurt Salmon Associates, said parents will be more sensitive to toy safety and that there might be short-term effects on sales. But given Mattel's strong brand, the company likely won't suffer long-term damage if it responds appropriately to the situation, she said.

Suzanne Condon, director of the Bureau of Environmental Health for the Massachusetts Department of Public Health, said the state sent a letter to Mattel earlier this month telling the company it is illegal to sell toys containing lead paint and detailing penalties for violating the statute, including fines and imprisonment.

The two parties plan to meet next week to discuss the issues raised in the letter and to talk about outreach efforts to ensure the products are being removed from all stores in the state.

Globe correspondent Se Young Lee contributed to this story. Jenn Abelson can be reached at abelson@globe.com.