FAO Schwarz’s Toys ‘R’ Us
Toys "R" Us
and FAO Schwarz couldn’t be two more different toy store retailers.
If you believe Jerry Storch, chairman and chief executive officer of Toys
"R" Us, Inc., that will not change now that his company has completed
a deal to purchase the upscale FAO Schwarz business.
have enormous respect for the FAO Schwarz brand and for the special place it holds in the hearts of
children everywhere," said Mr. Storch in
a press release.
"Building upon this storied tradition is a responsibility we take very
seriously. We will work tirelessly to preserve the distinctiveness and integrity
of the FAO Schwarz stores and brand as we grow the business and, indeed,
take the brand to even greater heights."
Chris Byrne, director
of content at TimetoPlayMag.com, was
enthusiastic about the deal. "Financially, I think it’s brilliant," he
told Bloomberg. "You get all of the cachet and the look of
a specialty store and a destination with the operational efficiencies of
a giant like Toys "R" Us."
the acquisition, Toys "R" Us intends to operate FAO Schwarz’s
flagship store in New York and a store at the Forum Shops at Caesars Palace
in Las Vegas. It will also continue to operate its website and catalog
casualty of the deal will be the FAO Schwarz shops operated within Macy’s.
There are currently 260 of these
around the country that will be closed by the end of November.
According to a Chicago
Sun-Times report, the FAO Schwarz store inside Macy’s State Street
location "had done significantly more business than it had anticipated
since it opened Nov. 1, 2007. The store, on Macy’s fifth floor, attracted
so much traffic that it helped increase sales in surrounding children’s
What is your reaction to the deal made by Toys
"R" Us to acquire FAO Schwarz? Do you have any advice for Jerry
Storch and his management team?
- Toys ‘R’ Us Acquires
FAO Schwarz, Fifth Avenue Store – Bloomberg
Inc., Acquires FAO Schwarz –Toys"R"Us,
- FAO Schwarz will
close in all Macy’s stores in November – Chicago Sun-Times