FAO Schwarz Returns To Roots

Last year at this time, FAO Schwarz was losing out to the big chain stores, and being forced into bankruptcy for the second time in a year. So, says The Early Show correspondent Tracy Smith, the company shut its flagship store in Manhattan and rebuilt it from the hardwood floors up.

The store is now reopened and, Smith observes, is pretty impressive for adults, and "heaven" for kids.

Smith gave viewers a tour of the refurbished toy mecca.

"It has all the things you'd expect to find in a big city, high-end retail place," Smith says. "You've got your dolls, and your books, and your building blocks. But that's kid stuff.

"From the ceiling that sparkles with thousands of tiny lights, to the polished floors, most of what's sold here is unavailable anywhere else," Smith points out.

Precisely, says FAO Schwarz CEO Jerry Welch: "When we restructured our company, we decided we were going to eliminate any products carried by the big discounters. So we don't carry anything you could find at … any of the large discounters."

Smith pointed to an entire zoo of stuffed animals as an example.

The store also offers a miniature Hummer, gas-powered mini-Ferrari, and a mini-Jaguar convertible.

"We don't think you can be excessive … with your children," Welch told Smith. "We think all parents want special things for their children, they want to indulge them, and this is a place where you can do it."

There's something in every price range, including dolls customized to look like their owners. You pick out the eyes, the hair color and, within a few minutes, a baby doll meant to resemble its buyer has been created.

For older kids, FAO now carries a full line of Vespa scooters and Segway "human transporters."

Not to mention, karaoke machines.

But, Smith adds, not everything at FAO Schwarz has changed. In the movie "Big," Tom Hanks and Robert Loggia danced on the store's giant piano keys. They're still in the store, and you can buy one of your very own -- for $150,000. But they let you try it out for free.

They've also added a soda fountain that sells, among many other creations, a giant concoction called, "The Volcano. For a "mere" $100, it serves four.