Should Target expect something big from its FAO Schwarz toy deal?
Target is hoping for big things from its newly announced multiyear agreement with FAO Schwarz that will give the chain exclusive rights to sell the toy brand’s products within dedicated areas in its stores and on its website.
“One of the reasons families love shopping at Target is because of our incredible assortment of toys, and that selection is only getting better with our new exclusive agreement with the beloved FAO Schwarz brand,” said Jill Sando, executive vice president and chief merchandising officer, Target, in a statement.
Target will gain access to more than 120 toys from FAO Schwarz, with products ranging in price from $9.99 to $149.99. The focus will be on more affordable toys, 50 being priced at under $20. The products, which will be available in stores and online beginning in mid-October, will be featured within Target’s toy departments, using “playful store displays” to draw attention to top toys. Select stores and target.com will also feature toy demonstrations given by Target toy experts throughout the holiday season.
The chain plans to add exclusive product drops from FAO Schwarz throughout the holiday season. The new collection will include “the FAO Schwarz Style Runway 4-Sided Fashion Show Playset, FAO Schwarz Ride On Train, FAO Schwarz Makeup Vanity Mirror Set, legacy Dance on Piano Mat and over 50 new plush toys.”
FAO Schwarz, which is celebrating its 160th anniversary, is also including a collection of nostalgic toys all priced under $25. These include the FAO 160th Anniversary Teddy Bear, Funko Toy Soldier Pop and the Hot Wheels Collector Set.
The two companies worked together for the 2020 holiday season and this new deal suggests that the previous arrangement met the expectations of both parties.
“We are incredibly thrilled to partner exclusively with Target after having forged such a successful relationship together over the past couple of years. There truly is no better way to kick off our 160th anniversary than to announce this partnership,” said David Niggli, chief merchandising officer, FAO Schwarz. “FAO Schwarz has been celebrating the wonder of childhood and bringing awe and discovery to all children — and the child inside all of us — for 160 years, and now families everywhere across the U.S. can enjoy this experience at their local Target store.”
DISCUSSION QUESTIONS: Do you expect FAO Schwarz’s toys to be a big contributor to Target’s holiday season performance? Will this deal and other steps Target has taken give it a distinct point of differentiation from its toy competitors in the market?