THINKING OUTSIDE THE TOY BOX SHELF SPACE IN STORES AT A PREMIUM.

Byline: Candice Choi Staff Writer

Gas, a pack of smokes ... and a toy truck for Timmy?

Toys are popping up in such unlikely places as gas stations, hardware stores and 7-Elevens as manufacturers offer their goods wherever they think parents and kids may be.

``We're not sitting back and waiting for people to enter the toy aisle,'' said Michael McNally, spokesman for Lego. ``We want to be where (shoppers) are, wherever they are.''

These days, it is not toy store chains like Toys 'R' Us and KB Toys, which have closed dozens of under-performing stores over the last few years.

Toy manufacturers are instead working with a wide swath of retailers to keep their wares front and center. The idea is not just to keep products on shelves, but to make them part of the daily routine, whether it's a quick run to the grocery store or the home and garden center.

Home Depot carries a line of John Deere tractor trucks, made by RC2. The trucks are selling so well the majority of locations in the Valley have sold out.

Microsoft's Halo 2 Xbox video games are so popular at 7-Eleven stores that only three were left at a store near Wilshire Boulevard and Highland Avenue on Wednesday.

Mattel has fueled its brand through promotional deals with Chevron gas stations, and Hasbro is selling a line of bracelets at Limited Too, a clothing chain for pre-teen girls. Now The Walt Disney Co. is considering hawking its wares at dollar stores.

``It makes it convenient for the shopper,'' said Steveanne Auerbach, a toy expert.

People want to do all their shopping in a single, convenient trip, she said, and toy stores are getting harder and harder to find. That's due in part to shoppers who are finding less-expensive alternative stores.

Twenty years ago, Sears accounted for the lion's share of Hasbro sales. A decade later, Toys 'R' Us eclipsed Sears, only to be succeeded more recently by discounters like Wal-Mart, said Brian Goldner, the company's president of the toys segment.

As shopping patterns have changed over the years, Hasbro has tailored its goods to specific outlets. The company works with arts and crafts stores to sell Play-Doh, sporting goods stores to pass Nerf balls and electronic stores to sell video players.

Even discounter Sam's Club recently started selling a line of Hasbro dolls.

``We're looking how we can take our products to every point of retail,'' Goldner said.

The distribution of Disney's toys has mirrored what's happening in the overall toy industry, with more units being sold through retailers like Wal- Mart rather than toy stores, said Gary Foster, spokesman for Disney's consumer products division.

In 2003, Wal-Mart, Toys 'R' Us and Target accounted for 47 percent of Mattel's sales. Likewise, the bulk of Lego sales also take place in these three stores. And Lego is always looking for opportunities to increase sales through specialty retailers, McNally said.

``If we have a product we think would fit somewhere, we're welcome to the idea,'' he said.

Over the long term, Mattel also expects the demand for toys will shift to alternative retailers, spokeswoman Lisa Marie Bongiovanni said in an e-mail.

Disney is exploring the possibility of rolling out its products at Walgreens, Kroger's, and even dollar stores, Foster said.

``If they're devoting aisle space to toys, then yes, we want to be there,'' he said. ``We're going where the shoppers are.''

Shopping at Toys 'R' Us on Wednesday was a rare occasion for Woodland Hills resident Richard Delfino. He buys toys for his younger brother throughout the year, but usually while he's shopping elsewhere.

Looking over some sale items he said: ``I never come here unless it's Christmas.''

Candice Choi, [phone]

candice.choi(at)dailynews.com

CAPTION(S):

3 photos

Photo:

(1 -- color) Toy cars sit for sale atop a refrigerator at Woodland Hills Chevron as Gurdip Singh stocks the case.

Michael Owen Baker/Staff Photographer

(2 -- color) After learning how hard it was to get the hottest Xbox game Halo, 7-Eleven owner Harjeet Gill of Northridge now sells it at his store.

Gus Ruelas/Staff Photographer

(3 -- color) North Hollywood Home Depot supervisor Zack Thom shows the kid-sized replica of the John Deere utility vehicle the store sells.

Evan Yee/Staff Photographer