Toys ‘R’ Us Acquires FAO Schwarz

Last week, Toys “R” Us Inc. of Wayne, N.J., announced its purchase of iconic toy retailer FAO Schwarz. “We have enormous respect for the FAO Schwarz brand and for the special place it holds in the hearts of children everywhere,” said Jerry Storch, Toys “R” Us chairman and CEO. He noted the company will continue to operate FAO Schwarz’s legendary stores on Fifth Avenue in New York and in Las Vegas and uphold the retailer’s distinct identity as it grows the business.

Toys “R” Us will run the FAO Schwarz e-commerce and catalog operations under the legendary FAO Schwarz name, however all merchandising, management, distribution and marketing operations will transition to Toys “R” Us, Inc. Other terms of the transaction were not disclosed.

Earlier this year, Toys “R” Us acquired the Web sites eToys.com, babyuniverse.com and ePregnancy.com, growing its market share in the toy segment. Storch noted the FAO Schwarz purchase will allow his company to utilize the strengths of both brands to further differentiate itself from the mass market. “We look forward to working together with the expanded universe of respected FAO Schwarz manufacturers and other valued partners, while developing innovative and quality product offerings,” he said. “We are committed to providing the loyal clientele of FAO Schwarz with the unique shopping experience they have come to expect.” Visit www.toysrus.com.

In This Issue: Preschool properties that translate into consumer products successa Retailers reveal the power of accessories The sports licensing report Plus: Character-based apparel Coming Next Month: Keepsake gifts that appeal to contemporary and traditional consumers Communion wear trends Recession-busting tips from veteran retailers Plus: Versatile special occasion wear