FAO Schwarz to run toy stores at Macy's

CINCINNATI and NEW YORK Macy's and FAO Schwarz have signed an exclusive agreement that would bring FAO-operated toy stores to up to 275 Macy's stores in fall 2008. FAO Schwarz stores are planned to expand into a total of approximately 685 Macy's stores over the next two years.

The agreement makes FAO Schwarz the exclusive toy department in Macy's stores. FAO Schwarz continues to independently own and operate its own stores including the Fifth Avenue Flagship store in New York City.

The Macy's FAO Schwarz shops opening this fall in about 75 stores will range from 1,000 to 3,500 square feet. Macy's will host smaller FAO Schwarz departments in an additional 200 stores, which will range from 200 to 300 square feet. In addition, the companies plan to sell FAO products on macys.com.   

"This is an outstanding partnership that will bring toys back to Macy's in an exciting and unique way," said Terry Lundgren, chairman, president and ceo of Macy's. "FAO Schwarz is the world's most famous toy retailer with interesting and distinctive products that appeal to our customers and will drive store traffic, particularly to our children's departments."