Experience, experience, experience. For toy retailer FAO Schwarz and consumer tech retailer The Sharper Image, it’s not just a trending topic but a long-employed approach to customer engagement. Moreover, it’s experience that helped to cement each brand’s position as titans within their respective industries.
July 6, 2018
Experience, experience, experience. For toy retailer FAO Schwarz and consumer tech retailer The Sharper Image, it’s not just a trending topic but a long-employed approach to customer engagement. Moreover, it’s experience that helped to cement each brand’s position as titans within their respective industries.
“We were experiential before it was cool to be experiential,” says David Conn, chief executive officer, ThreeSixty Brands.
Having faced a series of corporate restructurings, brick-and-mortar closures, migrations online and more, each company has managed to find its unique place in the current retail climate. ThreeSixty Group, which owns FAO Schwarz and holds the licensing rights for The Sharper Image brand, has outlined plans to engage customers old and new.
FAO Schwarz was founded in 1862 as “Toy Bazaar,” and quickly established itself as a retail case study, both in terms of size and reach, in America’s largest cities. Capitalizing on its locations and inventory, FAO Schwarz became a shopping destination rather than simply a quick stop. Despite undergoing a formative name change, the Bazaar concept lived on as the store engaged in product exhibitions, one of the first mail-order catalogs, in-store activations, and pop-culture at large, most notably in the movie Big. Also notably, Nintendo first premiered its Nintendo Entertainment System at FAO Schwarz in 1985.
“When you mention FAO Schwarz, people smile and they have these emotional stories about when you walked into that store on Fifth Avenue [in New York City],” says Conn. “It was transporting, a sense of wonderment, product demonstrations and theater. That's what we want to bring back. That's what's missing in retail today.”
Right Start purchased the toy retailer in 2002, filing for bankruptcy twice and citing “increased competition from discounters” in a 2003 interview with the New York Times. Subsequently, the company shuttered its flagship and faced a series openings, re-openings and ownership changes until being purchased by ThreeSixty Group in 2017. Through the changes, FAO Schwarz remained a staple for tourists and parents, featuring over-the-top displays and actors who would perform as characters, primarily around the holidays.
In 2015, FAO Schwarz announced that it would be closing its New York flagship and dismantling several of its U.S. brick-and-mortar operations. It re-launched in 2017 with shop-in-shops at more than 5,000 retailers nationwide and plans to open a 20,000 square-foot flagship in New York’s Rockefeller Plaza.