Macy's Inc. (Cincinnati) has signed an agreement with FAO Schwarz Inc. (New York) to open branded specialty toy shops in about 685 Macy's locations over the next two years.
By this fall, Macy’s will launch 75 of the FAO Schwarz shops, between 1000 and 3500 square feet, at 75 Macy's stores. Another 200 stores will have smaller 200-300-square-foot FAO Schwarz toy departments. The boutiques will carry the toy retailer's private label toys and other select brands, the companies said in a statement.
Macy’s chairman, president and ceo Terry Lundgren said the deal would “drive store traffic, particularly to our children's departments.”