FAO Schwarz Toys was founded by Frederick August Otto Schwarz and his brothers in Baltimore in 1862. In 1870, Schwarz opened his first toy store in NY, on 42 East 14th Street in Union Square NYC. After a few years, this cherished NYC toy store, originally known as the Toy Bazaar, moved to 745 Fifth Avenue, where Bergdorf Goodman Men's Shop NYC now stands. The oldest toy store in the United States, FAO Schwarz was acquired by Toys"R"Us, Inc., in 2009. As of 2011, the last FAO Schwarz store in NYC is located in the GM Building on Fifth Avenue.
FAO Schwarz shops were featured in stores for the 2009 holiday shopping season. The concept was expanded this year into permanent 230 square-foot boutiques at the front of each store that offer approximately 85 unique FAO Schwarz toys at prices ranging from $3.99 to $199.99.