CINCINNATI–Macy’s is getting back into the toy business.
The department store and FAO Schwarz have signed an exclusive agreement in which FAO Schwarz will open FAO-operated toy stores in up to 275 Macy’s stores in fall 2008. FAO Schwarz stores are set to expand into about 685 Macy’s stores over the next two years.
Under the agreement, the iconic toy merchant has named Macy’s the exclusive U.S. retail store host of FAO Schwarz departments, and FAO Schwarz will be the exclusive toy department in Macy’s stores.
In fall 2008, FAO Schwarz shops of between 1,000 and 3,500 square feet will open in about 75 Macy’s locations across the country. Another 200 Macy’s stores will house smaller FAO Schwarz departments of between 200 and 300 square feet. Plans also call for FAO Schwarz products to be sold on macys.com.
FAO Schwarz continues to own and operate its own stores, including its Fifth Avenue flagship store in New York.