Right now that growth is in malls, and many of them upscale. This year the company opened stores in Bellevue (WA) Square; Tysons Corner Center in McLean, VA; and Westfield Shoppingtown Valley Fair in Santa Clara, CA, among others. Lego also operates four outlet stores, as well as units in the Anaheim, CA, and Orlando, Disney theme parks.

So it doesn't compete with the many chains, such as Target Corp., that sell Lego products, the company has differentiated its stores by making them destinations for big fans of the colored bricks, the spokeswoman says. The stores, which range in size from 750 sf to 2,000 sf, sell items that, the company claims, customers can't purchase at other chains, such as large train sets and other collectibles. They also have a section called "Pick-A-Brick," where shoppers can fill up a container with various Lego pieces for $9.99. "You're appealing to a more serious collector," Carter says.

The stores could be a good way for Lego to compete with cheaper competitors such as Mega Bloks, which sells interchangeable products, says Chris Byrne, a New York-based toy consultant. (Lego no longer has the patent on the design of its bricks.)

The stores "give them an opportunity to showcase their brand and put it in front of affluent people who aren't shopping on price," he says. "In this market it's a little bit daring, but these are nice place for kids, and it really gets them involved in the brand." Byrne says the biggest challenge the company faces is to ensure the stores can profit in high-end malls.

Lego is doing well so far at Bellevue Square, says Jennifer Leavitt, vice president of marketing at the center, where the company opened a unit in late July. "We've been very excited to have them because we don't have a true toy store in our tenant mix," she says of the 1.3-million-sf mall, where FAO Schwarz closed last year and a Wizards of the Coast gaming unit shuttered earlier this year.

The folks at Bellevue Square, the only center to house multiple retailers in the Seattle area, likes that Lego is not looking to expand rapidly, Leavitt says. "Not only does it fulfill a category we've seen a decrease in over the last couple of years, but it's also a one-of-a-kind in the area," she says.