Reports suggest FAO Schwarz is looking to open a flagship London store, putting it in head-to-head competition with Hamleys.
According to The Observer, the retailer has been researching the UK market and an executive is being sought to lead the new operation.
The firm has three stores in the US, with its iconic New York shop on Fifth Avenue in the General Motors building. It was bought in 2004 by investment firm DE Shaw, which aims to transform it into a lifestyle brand. It also recently acquired luxury children’s clothing brand, Best and Co.