FAO Schwarz Expands New York Presence Through Strategic Nordstrom Partnership

FAO Schwarz has a second site in New York and more Nordstrom tie-ups planned.

Jack Koto Nordstrom

For over a century, a trip to New York during the holiday season was considered incomplete without a visit to FAO Schwarz.

The legendary toy retailer has long been a staple of childhood wonder, famous for its towering stuffed animals, toy soldier performances, and the iconic giant floor piano immortalized in the 1988 film Big.

In a significant expansion, the retailer has opened a second Manhattan location within Nordstrom’s flagship store on West 57th Street. This move marks the first time in more than a century that the brand has simultaneously operated two locations within New York City.

The opening is part of a broader strategic alliance that will see FAO Schwarz products available on Nordstrom’s website, with a planned nationwide rollout across the department store chain.

“Nordstrom is a perfect partner for FAO Schwarz, given its long tradition of beautiful stores, unique product offerings, and commitment to exceptional customer service,” stated David Niggli, Chief Merchandising Officer at FAO Schwarz.

A New Experience at Nordstrom New York

The new flagship concession features the brand’s most beloved elements, including life-sized plush animals and the interactive musical piano. The space is designed for engagement, offering interactive stations where customers can personalize handbags, create custom makeup kits, adopt dolls with official birth certificates, and customize Brio train sets.

This partnership comes at a transformative time for Nordstrom. Following its transition to a private company in late 2er024—a deal led by the Nordstrom family and Mexico’s El Puerto de Liverpool—the retailer now possesses the flexibility to pursue long-term strategic investments without the immediate pressures of quarterly public reporting.

By integrating the FAO Schwarz brand, Nordstrom aims to enhance its appeal to families, providing a unique retail destination that distinguishes it from both traditional department stores and online marketplaces.

For FAO Schwarz, the deal serves as a cornerstone of its brand revival. Founded in Baltimore in 1862 by Frederick August Otto Schwarz, the company moved to New York in 1870 and quickly became a premier destination. By the late 19th century, it was celebrated as New York’s “Original Santa Claus Headquarters,” famous for its lavish holiday catalogs.

The brand’s move to Fifth Avenue in 1931 cemented its status as a cultural landmark. The store became a cinematic icon, appearing in films such as Big, Home Alone 2, and Annie. However, despite its cultural significance, the business faced immense challenges due to rising real estate costs on Fifth Avenue and shifting retail landscapes, leading to several ownership changes and the eventual closure of its flagship location in 2015.

Strategic Rebirth and Future Growth

The brand’s recovery began in 2016 after being acquired by the ThreeSixty Group. Rather than attempting to replicate the massive Fifth Avenue model, the company pivoted toward a more agile strategy involving curated locations, international expansions in cities like London and Paris, and highly interactive flagship experiences, such as its Rockefeller Center location.

The partnership with Nordstrom will see a phased rollout. While the brand’s assortment will eventually be available across all Nordstrom locations, eight specific stores will host “The Jewel Box.” This enhanced store-within-a-store concept will feature live demonstrations, storytelling, and branded activations.

The initial “Jewel Box” locations will include sites in California (Brea Mall, South Coast Plaza, and Fashion Valley), Miami (Aventura Mall), Illinois (Oak Brook Mall), New Jersey (Garden State Plaza), Texas (NorthPark), and Washington (Bellevue Square).

This expansion serves as a dual opportunity: allowing FAO Schwarz to introduce its heritage brand to a new generation of consumers while helping Nordstrom differentiate its physical retail experience in an increasingly competitive market.

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