I've never been there, but working at FAO Schwarz would be a "dream job" ... once you close the doors and lock the pesky customers out!
London has a similar huge, and over-priced, toy store called Hamleys (they also have branches in other places like Dublin and Dubai).
The closest we get here is probably ToyCo. in St Lukes as the biggest toy shop. Years ago there used to be a couple of shops called Toy Warehouse (or something like that) which were bigger. Many of the good shops have been shut down thanks to the greedy "big business" style of The Warehouse / Kmart / etc. Another great shop used to be Dorothy Butler's childrens bookshop - Borders was pretty good until the recent financial problems, and now those are going to be closed down / swapped to Whitcoulls branches too.