Toys"R"Us, Inc. Acquires FAO Schwarz
by Jay Cochran
May 28, 2009
Toys“R”Us, Inc., the world’s leading dedicated toy and baby products retailer, today announced it has acquired FAO Schwarz, one of the most iconic children’s retailers in the world and a brand synonymous with quality and innovation.
“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, Inc. will continue to operate the two FAO Schwarz retail stores, including the flagship location in New York City and a 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. Each of these businesses will continue to operate under the legendary FAO Schwarz name. All merchandising, management, distribution and marketing operations will immediately begin to transition to Toys“R”Us, Inc. 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,” continued 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, Inc. will offer employment opportunities to FAO Schwarz associates in the New York and Las Vegas stores.
Toys“R”Us, Inc. currently operates stores in 33 countries worldwide, offering its customers a differentiated merchandise assortment and a first-to-market experience with the hottest new toys. The acquisition of FAO Schwarz further advances the company’s toy authority position and broadens its growing portfolio of family-friendly brands. Earlier this year, Toys“R”Us, Inc. expanded its online brand offerings through the acquisition of the highly regarded eToys.com, babyuniverse.com, Toys.com and parenting resource site, ePregnancy.com.
FAO Schwarz, which has been in operation since 1862, is the oldest toy retailer in the United States. Over time, it evolved from a simple toy store to a world-famous experience. It offers distinctive quality merchandise, including a line of toys marketed under the FAO Schwarz brand name. The toy retailer is best known for its famous flagship store in Manhattan which attracts millions of visitors annually. A destination for unique hands-on family activities, the store has become a much-anticipated part of any visit to New York for generations of children and adults worldwide.
Comments...
ARROW -
2009-07-05 @ 7:29 pm
After shutting down most of there stores here in the Tampa area they had the money to take over a ritzy toy store like FAO Shwartz
Here's a section in the article worth noting:
Following the acquisition, ToysRUs, Inc. will continue to operate the two FAO Schwarz retail stores, including the flagship location in New York City and a 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. Each of these businesses will continue to operate under the legendary FAO Schwarz name. All merchandising, management, distribution and marketing operations will immediately begin to transition to ToysRUs, Inc. Other terms of the transaction were not disclosed.
What this apparently means is that the remaining FAO stores will essentially convert to upscale TRU stores, with the same kinds of product carried. This says that TRU wants to cash in on the FAO name as a "brand", much like Babies R Us is a spin-off of TRU. This gives TRU a opportunity to "boutique" some of its operations, and do something upscale with their services, in addition to running the regular stores.
It's also a likely way to offer exclusive collectibles in regular TRU outlets, by branding them with a FAO label, inaddition to featuring them in the actual FAO stores.
I think its a good thing. Anything to keep the chain around. We don't want another case of where KB was going down and then its Wal-Mart and Targets thats left. Not very good alternatives.
wasnt long ago tru was in da tank n now theyre swallowin fao. even win fao was around, the selection sucked n da prices were unreasonable. mayb fao will bcum a higher end, more collectable chain, or feature more imports 2 accompany tru. should b interestin.
After shutting down most of there stores here in the Tampa area they had the money to take over a ritzy toy store like FAO Shwartz
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