Toy sales are down 3%

Some toy retailers say they may need a Christmas miracle.

CNN— Some toy retailers say they may need a Christmas miracle. The $39 billion U.S. toy industry logs about half of its annual sales in the weeks leading up to Christmas.

So far sales are down 3% compared to the same time last year, and stores worry they have too much inventory.

With rising costs, it appears consumers are budgeting more carefully for the holiday season this year.

America’s two largest toy companies, Hasbro and Mattel, are counting on a flurry of last-minute shopping to help their bottom line.