`STAR WARS' GOODS SEEN AS SMASH HIT FOR RETAILERS.

Byline: Rachel Beck Associated Press

With ``Star Wars'' mania heating up across the nation, retailers are gearing up for what's expected to be one of the biggest rollouts of licensed merchandise in history.

Toys R Us is expected to announce today that most of its 1,500 stores will open at 12:01 a.m. May 3, the first day merchants are permitted to sell goods based on ``Star Wars: Episode I - The Phantom Menace.''

The Paramus, N.J.-based retailer also plans to dedicate a large area of its stores entirely to the ``Star Wars'' line.

Wal-Mart Stores Inc., the nation's biggest retailer, said ``Star Wars''-related goods - from snack foods to body lotion to skateboards - will be found in 16 of the 36 different departments in Wal-Mart stores.

``Wal-Mart is supporting this film with more movie-related merchandise than any other film in our history,'' said Les Copeland, spokesman for Bentonville, Ark.-based Wal-Mart.

Analysts expect sales of merchandise tied to the movie could top $2 billion this year alone, with an estimated $1 billion coming from toy sales.

The movie will debut May 19.

``Star Wars'' director George Lucas signed strict licensing deals with manufacturers that prevented them from releasing virtually all information on their products to the general public, including the media.