It looks like something George Lucas would dream up if he needed another Star Wars character. The new I- Dog from Hasbro has swinging plastic ears and light- emitting diodes on his shiny chrome head. Connect him to your digital music player, and the pint-size pup blasts tunes from a speaker in his back. Then his head will light up and sway along with the sounds. He'll be available in stores this fall for $29.99.

I-Dog is just one example of how the toy industry is combating a troublesome trend. Kids have largely been passing by stalwarts such as Barbie and Mr. Potato Head in favor of flashier higher- tech gadgets -- from video games to MP3 players. Last year, traditional-toy sales in the U.S. fell 3%, to $20.1 billion, according to market researcher NPD Group.

The fast-growing electronic-learning category is connecting with -- of all things -- the television. This year LeapFrog Enterprises, makers of the popular Leap Pad electronic learning systems, is introducing its new L-Max learning system ($99). A handheld device that connects to the TV, it enables parents to watch and interact with their kids as they go through software titles such as Spider-Man: The Case of the Sinister Speller.

Similarly, Vtech has shrunk its popular V.Smile TV-based learning device into a portable version that either connects to the TV or can be taken on the road. V.Smile Pocket costs $89 Separate "smartridges," educational games featuring such characters as Bob the Builder and Elmo, cost $20 each.

Other digital toys connect to the computer. Disney's Dreamsketcher ($59) is a stylus-operated electronic sketch pad that lets children play games as well as color and store drawings for printing via a PC. It's priced about $20 less than Mattel's two-year-old and similarly configured Color Pixter device, which has sold well.

A few of you have indicated that our recent suggestion of having toys on hand for the back-to- school shoppers helped to increase your sales, as well as to let shoppers know where to return for their Christmas shopping. Back-to-school sales are estimated to have increased 18% over 2004, although August sales numbers are not yet in.

Thanks for the great feedback and we’re happy that we were able to help.

Do them a great favor by telling them about our Free Reminder Service.

You would not believe the number of late communications we receive from organizations wanting to have our toys delivered within a few days. Every season, we are forced to send them away because we don’t want to risk our toys showing up late for these functions, especially when they will be given out to children.

So please, if you know of an organization that is even considering doing something for the holidays, forward this e-mail to them (see easy link below) along with your note on suggesting that they use our Free Reminder Service.

That way, they'll be reminded to consider their purchase in time to receive the toys prior to the date of the event.

Welcome to September -- back to school and gearing up for the upcoming holiday season.

Have a great season and feel free let us know how we may help to increase your sales and profit.

Many of you took advantage of our $175.00 discount on a two pallet purchase of children’s products – toys and clothing or athletic shoes. Thank you for the business and we will make every effort to offer more of these special deals in the future.

That’s all for this issue. Thank you for your attention and all the best!