Inside Out

One-of-kind continues to be key to FAO Schwarz's business. This holiday the retailer will have more than 30 percent exclusive product on its shelves, but the company is equally excited about new store-branded lines like Plush Animals in Plush Habitats, featuring designs like Frogs on a Lily Pad and Emperor Penguin Family in Igloos; a safari-themed infant plush collection that includes a bowling set, crib toys, stackers and playmat; and a Wooden Food Market filled with vegetables, ice cream cones, sausages and a wooden shopping cart. Holiday exclusives from outside vendors include Dog Park Plush designed by Derek Rippe, a recent FAO Schwarz toy invention winner, a Design-Your-Own Steiff Teddy Bear ($300), Strawberry Shortcake and Care Bear dolls from Madame Alexander, a wooden kitchen from PlanToy and Brian Froud's plush Goblins collection (pictured).

Ed Schmults, CEO, tells Playthings that, while FAO has traditionally offered high-end toys with high-end price tags, the retailer is looking into stocking more economical product, yet still of high quality. It has cut 10,000 SKUs from 200 vendors to balance their offerings and will continue to do so. “We want the product to connect not just with the child but with the family,” he says. “When the average American walks through the door and wants an $8 item, [we want] that family to feel like they can afford something here. We got rid of some of the gratuitously expensive product. We can't take ourselves too seriously. After all, we sell toys.”

However, FAO is still FAO, so there remain collectible items that have bigger price tags for bigger kids. There's the Leather Rubik's Cube for $195 and a Leather Monopoly board for $1,400. And Liberty Puzzles will make a puzzle using a child's face, part of a push for more products with heirloom potential. Schmults says he wants to push more heritage pieces, products that can “pass from generation to generation.” It seems to be working. Business was up 48 percent at FAO's New York store last year.