FAO Schwarz Opens Second Manhattan Store Inside Nordstrom Flagship

FAO Schwarz opened a second Manhattan location inside Nordstrom's flagship store on West 57th Street on June 29, 2026. The new site marks the first time in more than a century that the toy retailer has operated two New York City stores at once. The partnership will also place FAO Schwarz products on Nordstrom's website and later expand to additional Nordstrom stores across the country.

Eight locations will receive an enhanced "Jewel Box" format that includes demonstrations and branded activations.

Schwarz was founded in 1862 and moved its flagship to Fifth Avenue in 1931. The original store closed in 2015 after multiple ownership changes and rising rents. ThreeSixty Group acquired the brand in 2016 and opened a Rockefeller Center flagship in 2018. The company has since added shop-in-shops in several international cities and partnered with Target beginning in 2022.

The Nordstrom location features the brand's signature toy soldiers, oversized plush animals, and the dance-on piano. Interactive stations allow customers to personalize handbags, create custom makeup kits, adopt dolls, and customize Brio train sets.

Nordstrom was taken private at the end of 2024. The company now has greater flexibility to pursue long-term retail strategies without quarterly reporting pressure. "Nordstrom is a perfect partner for FAO Schwarz, with its long tradition of beautiful stores, unique and quality products, and its commitment to the best in customer service," the chief merchandising officer at FAO Schwarz said.