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FAO Schwarz was founded in 1862 and holds the distinction of being the oldest toy company in the United States.
In 1984, Jim Henson and his team created a Muppet boutique, cited as the first "shop-within-a-shop," which opened at FAO Schwarz flagship store in New York City. The boutique highlighted The Muppets Take Manhattan, and prominently featured the Muppet Babies (who would get their own boutique at Macy's later that year). Years later, another Muppet-themed boutique, The Muppet Whatnot Workshop, opened in 2008.