Mattel Needs A Knock-Me-Out Elmo

It's the best-kept secret in toyland. On Sept. 19, Mattel Inc. (MAT ) will debut the latest version of its popular Elmo toy. In the past, the furry red Sesame Street character has giggled when tickled, danced the hokey pokey, and performed the limbo in a Hawaiian shirt. This year, however, Mattel is refusing to reveal Elmo's latest trick. To build buzz for the toy's 10-year anniversary, retailers won't receive boxes of the new $40 Elmos until the night before they go on sale. Some stores have even installed countdown calendars, tearing off the days until T.M.X. Elmo is unveiled on Good Morning America. "Innovation and marketing, it's exactly what the industry needs," says Gerald L. Storch, Chairman and CEO of Toys 'R' Us Inc. (TOY ).