FAO Schwarz
| Company type | Private |
|---|---|
| Industry | Retail, Toys |
| Founded | January 1, 1862 in Baltimore, Maryland, United States |
| Founder | Frederick August Otto Schwarz |
| Headquarters | New York City , United States |
Area served | United States, International locations including Beijing, London, Dublin, Milan, Chicago, Paris (planned) |
| Products | Premium toys, oversized stuffed animals, interactive toys, games |
| Owner | FAO Schwarz Family Foundation (brand name and trademarks) |
| Parent | ThreeSixty Group (retail operations) |
| Website | www |
FAO Schwarz is a renowned American toy brand and retail chain distinguished for its premium toys, oversized stuffed animals, engaging interactive features, brand collaborations, and games. Established in 1862 by Frederick August Otto Schwarz in Baltimore, the company later relocated to New York City, gaining prominence with signature items such as the dance-on piano, famously featured in the 1988 movie Big.
The business experienced bankruptcy twice in 2003, resulting in the temporary shutdown of its flagship store on Fifth Avenue in 2004. In May 2009, Toys "R" Us purchased FAO Schwarz but permanently closed the Fifth Avenue location in 2015. Later, ThreeSixty Group acquired the brand and launched a new flagship store at 30 Rockefeller Plaza in November 2018.
By 2019, FAO Schwarz broadened its international footprint with outlets in Chicago, Beijing, London, and Dublin. The FAO Schwarz Family Foundation owns the brand name and trademarks, which are exclusively licensed to ThreeSixty Group responsible for managing all retail operations.
Early history
Founded in 1862 in Baltimore under the name "Toy Bazaar" by German immigrant Frederick August Otto Schwarz, FAO Schwarz established a New York City presence in 1870 with the "Schwarz Toy Bazaar" at 765 Broadway. The store moved to 42 E. 14th Street near Union Square in 1880 and later to 39 and 41 W. 23rd Street in 1897. That same year, The New York Times described Schwarz as "the largest dealer in toys in this city."
Beginning November 1869, the Schwarz Toy Bazaar hosted annual Christmas toy exhibitions. By 1896, it marketed itself as New York’s "Original Santa Claus Headquarters." Since 1876, the FAO Schwarz holiday catalog has been published yearly, reinforcing its seasonal market influence.
In 1931, the flagship relocated to 745 Fifth Avenue, where it operated for over five decades. Parent's Magazine Enterprises acquired FAO Schwarz in 1963 under an agreement granting use of the name for five years with royalties paid to the Schwarz family, who maintained a 9% equity stake and used royalty income to support youth nonprofit initiatives. Ownership changed hands again when W.R. Grace purchased the company in 1970, followed by acquisition by Swiss toy retailer Franz Carl Weber in 1974.
In 1985, San Diego-based Christiana Companies briefly owned FAO Schwarz before Peter L. Harris and investment banker Peter Morse acquired it in 1986 through Morse Partners Ltd., moving the flagship store to the General Motors Building at 767 Fifth Avenue. The company was sold to Dutch firm NV Koninklijke Bijenkorf Beheer (later Royal Vendex/KBB NV) in 1990. Throughout the 1990s, FAO Schwarz pursued an aggressive expansion strategy across the United States, reaching a total of 40 stores by the year 2000.
Right Start, FAO Inc. and bankruptcy
In 2001, Calabasas-based toy retailer Right Start, Inc. purchased 23 of the existing 40 FAO Schwarz outlets—including the flagship on Fifth Avenue—from Royal Vendex for approximately $50–60 million. The following year, Right Start rebranded itself as FAO Inc., operating stores under The Right Start, Zany Brainy, and FAO Schwarz banners.
Confronted with financial difficulties, FAO Inc. issued a warning in December 2002 that bankruptcy might be imminent unless bank lending restrictions were eased. The company filed for bankruptcy protection in January 2003 but emerged from it by April. Nevertheless, a second bankruptcy filing took place in December of that year, resulting in all remaining thirteen FAO Schwarz stores closing by January 2004. Although plans existed to reopen the Fifth Avenue flagship mid-year, it ultimately reopened on Thanksgiving Day of 2004 after renovations aimed at attracting increasing tourist traffic. Meanwhile, the Las Vegas Forum Shops location remained operational until its closure in 2010.
D. E. Shaw & Co.
In February 2004, the investment firm D. E. Shaw & Co., L.P. purchased FAO Schwarz's retail locations in New York and Las Vegas, along with its catalog and online operations. These stores resumed business on Thanksgiving Day of the same year. By November 2007, FAO Schwarz expanded by acquiring Best & Co., a high-end children's apparel company, but this venture concluded when the company shut down in 2009.
Toys "R" Us, Inc.
Toys "R" Us Inc. became the owner of FAO Schwarz in May 2009. That holiday season, FAO Schwarz boutiques were introduced temporarily inside U.S.-based Toys "R" Us stores, and by October 2010, these boutiques had become permanent fixtures. Additionally, FAO Schwarz-branded products for infants and toddlers were launched nationwide within Babies "R" Us locations. The Las Vegas store closed its doors in January 2010, followed shortly by the closure of the flagship New York store.
ThreeSixty Group
In October 2016, ownership of FAO Schwarz transferred to ThreeSixty Group, Inc., acquired from Toys ‘R’ Us. While the brand remains under the ownership of the founder’s heirs through the FAO Schwarz Family Foundation, its operations are exclusively managed by ThreeSixty Group. August 2018 saw announcements for two new New York City locations: one opened at 30 Rockefeller Plaza in November 2018, featuring live toy demonstrations and exclusive merchandise including BRIO products; the second store launched at LaGuardia Airport in December 2018.
During October 2018, FAO Schwarz introduced pop-up shops at 90 Hudson's Bay Company stores throughout Canada for the holiday season. In March 2019, a new location debuted at Chicago’s Midway International Airport, followed by a store opening within Arnotts department store in Ireland later that year.
International growth continued with a Milan boutique opening in November 2021 and plans for a Paris store at Galeries Lafayette Haussmann scheduled for spring 2024, underscoring the brand’s strategic global expansion and increasing market presence.
Brand
FAO Schwarz is widely known for its extensive assortment of plush toys and its signature Piano Dance Mat—a compact rendition of the iconic The Walking Piano featured in the movie Big. The brand also offers exclusive luxury items such as a child-sized automobile embellished with over 40,000 crystals and valued at $25,000.
In addition to its proprietary products, FAO Schwarz showcases distinguished brands including Steiff, a renowned German stuffed animal creator; Melissa & Doug, a top educational toy producer; and Build-A-Bear Workshop, which provides a custom stuffed animal experience featuring exclusive FAO Schwarz collaborations. The brand also released an exclusive teddy bear plush coinciding with the launch of Kinectimals: Now with Bears!.
Logo
Over time, FAO Schwarz’s logo has incorporated various elements like a teddy bear, toy blocks, and a clock tower motif. In 2010, it was redesigned using red and silver hues to emphasize founder Frederick August Otto Schwarz’s initials and introduced a mascot named Wit. Later in 2017, design agency Mattson Creative revamped both the logo and packaging while creating the reopening campaign tagline and hashtag: "Return to Wonder".
In popular culture
The flagship FAO Schwarz store in New York has gained significant visibility through its appearances in various films, bolstering its brand recognition. Notably, the iconic giant dance piano was showcased in the 1988 movie Big featuring Tom Hanks. The establishment served as the inspiration for "Duncan's Toy Chest" in the 1992 film Home Alone 2: Lost in New York, and it was also featured in Woody Allen’s Mighty Aphrodite (1995), along with appearances in Baby Boom (1987) and Big Business (1988).
In the 1999 adaptation of Annie, the store’s Christmas window display is prominently highlighted. FAO Schwarz is mentioned in Toy Story 3 (2010) and is visible during a chase sequence in The Smurfs (2011), with scenes filmed on location.
More recently, the brand was referenced in a 2019 episode of The Simpsons and featured within the 2021 miniseries Hawkeye, where pivotal scenes occur at its 30 Rockefeller Plaza site, emphasizing FAO Schwarz’s lasting cultural significance and strong market presence.