For the first time in her almost 50 year existence, Barbie was beat out of the top spot in the fashion doll category by MGA Entertainment's Bratz.

Although Mattel's revenue rose 1.5% to $5.2 billion in 2005, Barbie, whose sales make up 20% of total sales for the world's largest toy manufacturer, declined 12.8% to $1.2 billion. What is worse is that isn't Mattel alone that Barbie's sales slump impacts, many of the world's largest toy retailers devote 100's of thousands of retail square footage to the Barbie brand.

While Barbie's "My Scene" has helped the brand to slow the decline in sales, it wasn't enough. The Bratz line of dolls took over the number one spot in fashion dolls. Its bare belly fashions and caked on make-up led the seven and older crowd to take it to the top spot. It is the hope of Mattel's management that Ken's new look (which is being so closely guarded that we were unable to include a picture here), which was announced in February, along with new executive management, as well as a live musical tour, which we reported on last year, will help to revive the brand.

Fisher-Price, a division of Mattel, will introduce a digital music player and digital camera for children ages three and older which will be available during the 2006 holiday season. Each will retail for $70 and withstand four-foot drops. Marketing at Fisher-Price is saying that with the camera, kids get a sense of accomplishment, of "mommy, look at what I did".

Tek Nek Toys will introduce a small music player with built-in speakers and flashing lights called CoolP3 Fusion for children four and up.

Emerson Radio will introduce a SpongeBob Square Pants speaker system for MP3 players and a digital camera.

With a 3% increase in children's electronics between 2003 and 2005 to $600 million per year, its no wonder that manufacturers are looking for new markets.

Hasbro's Playskool for the time being is steering clear of digital electronics for pre- schoolers.

Strong sales of Stars Wars merchandise drove up Hasbro's fourth quarter profit by 15%.

As "Stars Wars: Episode III's" May, 2005 release becomes a more distant memory and sales of its merchandise continue to drop-off, Hasbro will be challenged to find a replecament for that 15% quarterly profit increase before Spider Man 3 is released in 2007.

Toys-R-Us, the nation's second-largest toy retailer named a new chairman and CEO. G.L. Storch fills the top spot left open when J.H. Eyler departed in July after the company was taken private.

Storch, a former Target executive with experience in rejuvenating tired retailers, who left abruptly in October, had been widely seen as the potential successor to Target's CEO spot. He was responsible for several of Target's most important operations.

If you expect a refund after filing your 2005 Income Tax Return, here are two tips for making the most of your tax refund:

1. File electronically for a speedier refund (two-weeks versus six to eight, when filed via regular mail).

2. Invest your refund in a great value, closeouts investment with BlueRibbon for the most return on your money!

That’s all for this issue.

Thank you for your attention and all the best!

We welcome your comments and suggestions for our Newsletter. Please write to admin@blueribbontoys.com.