FAO Schwarz inks deal for North America airports

Dive Brief:

Hudson Group, which runs several airport stores in North America, will be the exclusive airport retailer for FAO Schwarz and FAO Schweetz product and shops, according to a company press release. The stores are slated to open by the end of 2019.
Spending in airports reached $38 billion globally in 2016, and it's slated to grow by 27% to $49 billion, according to GlobalData.
As former parent Toys R Us begins liquidating its domestic business, FAO Schwarz is back in growth mode, earlier this year announcing a global expansion strategy to chase sales overseas as well as a new New York City flagship.

Dive Insight:

FAO Schwarz is back in action a little over a year since troubled former parent Toys R Us sold it off to ThreeSixty Group, a company that designs and sells products including toys and home goods.

The toy company is putting most of its energy abroad, announcing a global expansion strategy in February. Its tie-up with Kidsland includes a flagship location in Beijing and Shanghai, plus 30 smaller FAO Schwarz specialty stores and shop-in-shops in 200 department stores across China over the next five years. Last year the company also inked a deal to launch a webstore and expand its joint venture with longtime partner Fung Retailing in Asia.

FAO Schwarz is also coming back to the U.S. Late last year the company said it was planning a new 20,000 square-foot flagship location at Rockefeller Plaza in New York in time for the holidays.

In a tie-up with now-bankrupt department store retailer Bon-Ton over the holidays, FAO Schwarz also brought back updated renditions of some of the best-loved items and some new favorites for the toy chest, including the famous Piano Mat.

Famous for its store's floor piano, human toy soldiers and intricate toy trains, FAO Schwarz was founded in 1862 and became known for its Fifth Avenue store in the General Motors Building in Manhattan, where rents are among the highest in the world. Toys R Us initially bought FAO Schwarz in 2009, but in 2015 the toy retailer shuttered its famous 45,000-square-foot, three-level store flagship Midtown store to save money.

FAO's enduring brand was a draw for Hudson, according to Hudson Group chief merchandising officer Michael Levy. "Hudson Group is committed to delivering exceptional, one-of-a-kind experiences to our guests," he said in a statement. "FAO Schwarz is an iconic brand that will offer a fresh and unique shopping environment for travelers."