Toys 'R' Us buys FAO Schwarz
By Staff -- Gifts and Dec, 5/28/2009 8:26:00 AM
WAYNE, N.J.—Toys “R” Us has acquired storied independent toy retailer FAO Schwarz for an undisclosed sum.
“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, Chairman and CEO, Toys “R” Us Inc. “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.”
Following the acquisition, Toys “R” Us will continue to operate the two FAO Schwarz retail stores—the flagship location in New York City and the retailer’s store at the Forum Shops at Caesars Palace in Las Vegas. In addition, the company will operate the FAO Schwarz e-commerce and catalog operations. All will continue to operate under the FAO Schwarz name.
Not continuing will be FAO’s deal for branded boutiques in Macy’s stores. That agreement will end in November, a Toys “R” Us spokesperson told Playthings.
All of FAO's merchandising, management, distribution and marketing operations will immediately begin to transition to Toys “R” Us. Other terms of the transaction were not disclosed.
“This acquisition allows us to grow our toy specialist market share and draw upon the unique strengths of both brands in developing quality products that differentiate us from our mass market competitors,” said Storch. “To that end, 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. We are committed to providing the loyal clientele of FAO Schwarz with the unique shopping experience they have come to expect.”
Toys “R” Us will offer employment opportunities to FAO Schwarz associates in the New York and Las Vegas stores.
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