Friday, May 29, 2009

CHOPSTICKS! F.A.O. Schwarz has been bought by Toys R Us. I try to go to the FAO flagship a couple of times a year, especially in the holiday season--not to buy anything, but for the experience of it (which might be part of the problem for them). FAO has a tricky business model, especially in the current economic climate--it's never going to be able to compete with the big boys on pricing (though the acquisition will help on that point), so has to offer something different and better--things like the "Create Your Own Muppet Toy," "Custom Barbie," "Custom Hot Wheels," and the like are helpful, but they don't get there. I hope TRU is able to help FAO find a substainable business model as well as preserve the magic the brand has.

No comments:

Post a Comment