FAO Schwarz opens toy boutiques in Toys R Us stores

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After years of decline, FAO Schwarz is making a comeback this holiday season.

The storied toy seller, which was bought by retail giant Toys R Us in May, is opening FAO Schwarz-branded toy boutiques inside 585 Toys R Us stores nationwide. It is also relaunching its e-commerce site and publishing a holiday catalog.

“This holiday season we are proud to celebrate the legacy of the FAO Schwarz brand, making it more accessible to customers from coast to coast while creating new traditions for generations of children to come,” said Jerry Storch, chief executive of Toys R Us.

The FAO Schwarz boutiques will be located prominently in the front of Toys R Us stores and feature colorful overhead signage and life-size displays of the famous FAO Schwarz toy soldier.

The assortment of toys has been selected to highlight dozens of classic FAO Schwarz items at affordable price points ranging from $2.99 to $64.99, the company said.

FAO Schwarz still operates stores in New York City and Las Vegas.

-- Andrea Chang