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Toys"R"Us, Inc. Acquires FAO Schwarz


JayC

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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.

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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, 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.

 

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.

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