KIDS HIT THE BRICKS AT LEGO OUTLET.

Byline: Brent Hopkins Staff Writer

GLENDALE - Brick by tiny brick, construction crews have erected a new haven for Lego enthusiasts.

The Danish toy maker has enough popularity to warrant its own theme park and 71 years of manufacturing expertise on its side, but it has little familiarity with the challenges of mall retail.

Lego aims to change that with its new concept store, which opened Friday in the Glendale Galleria. By setting up play areas and walls filled with the studded plastic bricks that built its empire, Lego figures it can build its way into the hearts, and wallets, of consumers.

``They're trying to make the stores a destination,'' said Chris Byrne, an analyst who follows the industry for TheToyGuy.com. ``You get into the excitement of being there, you get involved, and you just can't possibly walk out of there without buying something.''

Alicia Amistoso, a registered nurse from Silver Lake, found this out the hard way. On her day off, she drove down with her son, Carlitos, intending to just look around. After he romped his way through the store, she found herself buying a Racers Super Set.

``He saw something on TV and all we heard was 'Legos! Legos! Legos!''' she said bemusedly, watching her 4-year-old son stack bricks on a demo counter. ``Now, he doesn't want to go home.

Unlike the kits sold in toy shops and department stores, consumers can play with the bricks in-store, creating their own pirate ships and spacecraft from sets. If the prepackaged designs don't suit them, they can also visit the Pick-A-Brick wall, where they can rummage through bins of nearly every part Lego makes and buy in bulk.

Lego spokeswoman Melinda Carter said the store isn't designed to steal market share from existing vendors, some of whom will be sharing the same mall with the new entrants. Rather, Lego hopes it will lure new customers through the experience, then get them to buy in all retail channels.

``You get them in the store when they're young, and if they don't walk away buying anything, they try it out and put it on their holiday wish list,'' Carter said. ``We believe that when kids are able to experience the product physically, there's a playful learning experience. We're confident that if they test it, they'll love it.''

Lego has limited experience in the retail world, operating four outlets, three larger-scale Imagination centers and one regular store in Chicago. Its new plan will open seven stores this year, with Glendale's vast yellow floor and illuminated back wall serving as the prototype. Riding on a wave of hot products in recent years, including licensed Harry Potter sets and complex Bionicle figures, the company hopes to keep pushing itself in front of both children and its sizable amount of adult fans.

While the company has enjoyed renewed strength, it sits in a precarious position. Byrne sees strong competition from Hasbro's BTR Construction toys and the company has twice announced layoffs at its Danish factory this year, citing a weak sales climate.

``Our sales and consumer interest is as strong as ever,'' Carter said. ``We've got 98 percent global recognition, but you can't accept stagnation. To continue as a top brand, you've got to continue to grow.''

But growing even a well-regarded brand in this fashion is fraught with peril. Warner Bros. tried its hand at at selling directly through retail, but never got the hang of it, shutting its 130-store operation in 2001. Disney, as well, has suffered with its stores, and is now trying to close unprofitable locations to ready the chain for a sale.

Carter says Lego learned from the other chains' missteps, and will not over-saturate the market as they did. One key difference, according to Playthings magazine editor-in-chief Maria Weiskott, comes by offering kids a chance to play with the wares before they buy. Given the hands-on nature of Legos, this could be a bigger selling point than it would be with stuffed animals or collectible figurines.

``Specialty toy retailers thrive on the fact that you can play with the toys in the store,'' Weiskott said. ``It's like going shopping for clothes. You want to try them on before you buy them, right?''

Toy experts agree that the other incarnations of the store have a definite ``wow'' factor, but even that can be a difficult proposition. Though Byrne thinks nagging will be good enough to get some parents to cave in to on-the-spot purchases, he also cautioned that the stores could become very expensive advertisements for Lego's lower-priced vendors.

``Their greatest risk is becoming a showcase for online sales or buying at Wal-Mart,'' he said. ``You go there, spend an hour playing, buy something small, then go buy the bigger thing at Wal-Mart for cheaper.''

Lego aims to stave off the problem, which doomed Warner Bros. and has dogged Disney for years, by offering a different assortment of sets. Making full use of the site's 3,500 square feet, it includes classic kits no longer sold in regular toy shops and the Belleville and Scala brands, targeted at girls.

Four-year-old Jay Bourji didn't need to know what sets were inside; he just saw the bright colors and bolted into the store. His father, Ralph, knew it wouldn't be long before he'd be headed for the cash register.

``We saw the store and he came in right away,'' the Glendale-based wholesaler said, as Jay tried out a model sword from the Castle collection. ``The colors, the lights - it's very attractive. If we find something he wants, we'll get it.''

Brent Hopkins, [phone]

brent.hopkins(at)dailynews.com

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2 photos

Photo:

(1 -- color) Zander Rodriguez, 2 1/2, plays with Lego blocks Friday at the toy maker's new outlet store in the Glendale Galleria.

(2) Alicia Amistoso of Silver Lake and her son, Carlitos, play at the new Legos outlet store in the Glendale Galleria on Friday.

John Lazar/Staff Photographer