Children are likely to be given traditional toys with a twist for Christmas this year as parents turn to familiar brands and gifts.

Hamleys, whose flagship store is in Regent Street, Central London, yesterday tipped trusted brands, such as Barbie, Lego and Transformers, as potential bestsellers this year as it tried to start the Christmas sales buzz early.

Nigel Wheatley, Hamleys’ head of retail, said: “Parents are likely to go for old favourites and solid, reliable materials, such as wood.”

A Transformers Bumblebee Helmet, which alters the wearer’s voice, is expected to do well, as are figures from Waybuloo, a new CBeebies series.

Argos, Britain’s biggest toy retailer, also believes that traditional toys will sell well this year. Steve Knights, its commercial director, said: “While there is no clear blockbuster toy, our customers are telling us that, despite the tough economic climate, parents are determined to ring-fence spending on their children this Christmas.

“We also think that the economy may keep people at home this year, so anything from television sets to set-top boxes and from video games to computers should be popular once again.”

Toy manufacturers in Japan predict that the recession will mean that small, cheap offerings become more popular. The country's toy manufacturers specialised in small, collectable toys such as Mighty Morphin Power Rangers during its last recession.

Tomy, the toymaker, told investors yesterday that it had particularly high hopes for Beyblades, a range of fighting spinning tops.

Hamleys, which has embarked on an expansion programme, including a forthcoming store in Glasgow, is hoping to beat last year’s performance. Its previous owner, Baugur, the Icelandic investor, went into administration in February. Since then, there has been a management shake-up in the retailer, which is now owned by Landsbanki, the Icelandic bank.

After making a loss in 2008, Hamleys reported last month that like-for-like sales had risen 5 per cent for the eight weeks from the start of April, boosted by the weak pound, which has encouraged tourists to spend money.

It was also offering some less credit-crunch-friendly toys yesterday, such as an £1,800 rocking horse, a £1,500 model of a Lamborghini Murciélago LP640 emblazoned with Swarovski crystals, and a £750 life-size replica of a silverback gorilla.

Hornby goes for gold

Famous British toy and model brands, including Corgi, Hornby, Scalextric and Airfix, will soon carry the logo of the London 2012 Olympics (Ian King writes). Under a three-year licence, Hornby will develop products including Corgi models of London taxis and buses, Airfix kits of venues, including the Olympic Stadium, and Scalextric velodrome sets. Shares of Hornby, which have risen by 54 per cent since early April, rose 3.5p to 104p.

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