Toys"R"Us Sells Beloved FAO Schwarz Brand
Sadly, just a little over a year after closing FAO Schwarz's iconic flagship store in New York City, Toys"R"Us is selling off the brand. Toys"R"Us has owned the FAO brand for a little over seven years, and just sold the brand to ThreeSixty Group, a company that designs and distributes toys and other consumer products. Terms of the transaction haven't been disclosed. Fortune reports that ThreeSixty's goal is to move FAO Schwarz beyond stuffed animals, and more towards new and creative categories, such as arts and crafts and STEM-focused toys. Both categories have been growing over the last few years.
Total Retail's Take: Say it isn't so! I have to admit, I felt a small pang in my heart when FAO Schwarz's New York City flagship closed (who doesn't remember the iconic piano scene from "Big"?! sigh…). However, it looks like this move could breathe some new life into the brand. Over the last few years, Toys"R"Us has shuttered many of FAO Schwarz's storefronts, including its massive Times Square location, to help position itself against e-commerce competitors — most notably, Amazon.com. While there have been no formal discussions, it sounds like ThreeSixty Group isn't ruling out bringing back some of FAO's dormant storefronts.
And I'm just going to leave this here …