Article: Discounters' lower prices hitting toy retailers Also facing a holiday season without a hot item

Heading into what's traditionally the hottest season for toys, top toy retailers are in trouble and no action figure is likely to save them.

Competition from discount stores and consumer electronics chains that sell popular video games is shaking up the $21 billion toy market. "Combine the fact that discounters are convenient and their pricing better, then it's a hard battle," says Todd Kuhrt, a toy retail analyst at FTN Midwest Research.

* Toys R Us lost $38 million in the third quarter, a 35 percent bigger loss than a year ago. It plans to close its money-losing Kids R Us clothing stores and Imaginarium stores. Sales were flat at $2.3 billion. Toys R Us is one of the few companies that ...

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