Toys 'R' Us starts ramping up FAO Schwarz presence

October 27, 2009 at 3:29AM

NEW YORK - Ahead of the holidays, Toys "R" Us is opening FAO Schwarz boutiques in some of its stores and relaunching the iconic toy store's website.

The announcement gives the first clear indication of Toys "R" Us' plans for the brand best known for the scene in the 1988 movie "Big," in which Tom Hanks danced on a floor piano. The largest U.S. toy-store chain bought the brand in May.

FAO Schwarz has two standalone stores, one in New York and one in Las Vegas.

This year, Toys "R" Us will open 585 FAO Schwarz boutiques within its own stores, beginning Sunday.

The boutiques will feature life-size displays of FAO Schwarz's toy soldier, which stands outside its stores.

Toys will range from $2.99 to $64.99, including FAO Schwarz's annual holiday ornament and collectible stuffed teddy bear. Other toys include a dinosaur playset and classics, such as a jack-in-the box and a humming top.

Privately held Toys "R" Us also relaunched FAO.com, and it will continue to publish FAO Schwarz's holiday catalog, which will be sent out beginning Nov. 10.

Catalog items include high-end toys such as Steiff Karl Lagerfeld Teddy Bear -- which wears designer clothing -- for $1,499.99, and the Steiff Niki Riding Pony, a plush rocking horse for $549.99. There also are lower-price offerings, such as "(Not so) Scary Monsters" stuffed animals at $29.99.

Toy retailers have been increasingly squeezed by discounters such as Wal-Mart Stores Inc. and Target Corp., as well as by online retailers. Toys "R" Us has attempted to use the recession to gain market share. In addition to FAO Schwarz, the Wayne, N.J.-based company bought the assets of KB Toys Inc. and online toy seller eToys.com.

Toys "R" Us operates more than 1,550 stores worldwide, including 848 U.S. outlets.

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MAE ANDERSON, A ssociated Press

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