• by Sarah Mahoney , 3 hours ago

More than a third of toy industry growth this year is coming from adult buyers purchasing for themselves — and Nordstrom just made a very deliberate move to meet them. The department store announced a new partnership with the storied toy retailer, bringing experiential retail, specialty products and exclusive collaborations to customers nationwide.

The move comes as U.S. toy sales are surging, up 13% so far this year, driven by a surprising new audience: Consumers aged 18 and older were powering 35% of total industry growth through April, with female recipients accounting for more than half of overall gains, according to new research from Circana.

Much of that growth is happening in adult hobbies: Lego's Botanical line and Formula 1-themed building sets, collectibles driven by Major League Baseball trading cards, and a surge in sensory-related play, as well as the growing popularity of shopping and discovery on TikTok.

In a June report, Kristen McLean, Circana's vice president of client insights, zeroed in on the sensory category specifically: "Strong retail performance and social-driven discovery are transforming sensory toys from a niche segment into a scalable growth category," said McLean. "Fueled by ASMR content, unboxing videos, and the excitement of hunting for limited editions, these products are resonating with consumers across age groups and reinforcing the growing influence of social commerce on toy demand."

Sales of squishy toys, popularized by brands like NeeDoh, posted triple-digit growth so far this year.

That consumer — older, more affluent, shopping for herself as much as for her kids — is one Nordstrom knows well. The retailer’s goal is bringing FAO's familiar magic into select locations, including Toy Soldiers, Dance-on Pianos, Clock Towers and lifelike plush animals. Merchandising will also have a family focus, combining infant and preschool toys, apparel and gear in one destination. Highlighted brands include Brio, Bunnies by the Bay and Djeco, as well as exclusive toy launches specifically targeted to the Nordstrom customer.

Those locations will also include the hands-on activations that Nordstrom is increasingly relying on to make in-store shopping feel special. Shoppers can design and accessorize a custom FAO handbag, choose a swaddle and sign a birth certificate for a baby doll, or personalize a Brio train set.

A Nordstrom spokesperson tells Marketing Daily series of in-store activations will bring the partnership to life. In New York, for example, it will tie into the ongoing “Hello Saturday” series, with live DJs, and special services. “The FAO partnership will be woven into that programming, offering customers truly memorable moments throughout the year,”  she said.

"FAO Schwarz represents imagination and joyful discovery, which aligns naturally with how we think about creating meaningful experiences for our customers," said Tacey Powers, executive vice president and general merchandise manager for shoes, kids, and home at Nordstrom, in the announcement. "By partnering with a retailer that shares our vision for thoughtful curation and immersive retail moments, we're able to create something truly special — inviting customers of all ages to engage, explore and experience the joy of shopping."

Beyond the opening in the New York City Nordstrom flagship — which will mark FAO Schwarz's second Manhattan location in more than a century — the brand will open shop-within-a-shop spaces in eight additional stores. Those locations include Miami, Bellevue, Washington, three stores in California, Dallas, Paramus, New Jersey, and Oak Brook, Illinois.

Gains in the toy industry, which include a 5% increase in unit sales and a 7% increase in prices, are notable given the softness of consumer spending in other discretionary categories. Circana also sees a clear shift toward mid-tier and premium price brands, while entry-level price points are under pressure — a dynamic that suggests the adult hobby and collectibles boom still has room to run. FAO Schwarz, which also operates stores in Paris, Milan and Beijing, is betting Nordstrom's footprint can help it capitalize on that momentum in the U.S.