"Well, maybe the children will have two dolls instead of 30 dolls, you know? And maybe the two dolls will cost a couple of bucks more than they would normally."
"FAO Schwarz has learned the language of data-driven retail, though. The chain monitors the average time spent in store since introducing new experiences, and says there has been a double-digit gain in its "conversion rate" for customers who take one of the new shopping tours, for instance."
"While referrals are trending in a positive direction, AI platforms drive just 1% of overall traffic to sites, according to SEO platform Conductor. Again, ChatGPT leads the way here, accounting for 87% of all AI referrals."
December 24 will be the last newsletter of 2025, with a return on January 5, 2026. Holiday toy demand faces headwinds, amplified by public comments urging parents to buy fewer toys. FAO Schwarz shifted toward experiential, personalized, and first-come, first-serve offerings that are not available online and now measures increases in time spent in store and double-digit gains in conversion rates from new shopping tours. Generative AI is affecting referral traffic: ChatGPT drove 1.2 billion outgoing site visits between September and November, up from 799 million, while Google Gemini generated 287 million but grew 388% year over year. Overall, AI platforms account for only 1% of site traffic, with ChatGPT responsible for 87% of AI referrals.
Read at AdExchanger
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