Macy's to Open 685 In-Store FAO Schwarz Shops

Macy's to Open 685 In-Store FAO Schwarz Shops
May 16, 2008

Cincinnati-based Macy's Inc. announced that it has signed an exclusive agreement with FAO Schwarz to open FAO-operated toy stores in 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. Under the agreement, FAO Schwarz 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. FAO Schwarz continues to independently own and operate its own stores. In fall 2008, full-size FAO Schwarz shops of between 1,000 sq. ft. and 3,500 sq. ft. will open in 75 Macy's locations across the country. Approximately 200 additional Macy's stores will host smaller FAO Schwarz departments of between 200 sq. ft. and 300 sq. ft. Plans also call for FAO Schwarz products to be sold on Macys.com. The FAO Schwarz assortment at Macy's will feature its own private-label collection that is exclusive to Macy's and FAO Schwarz stores, in addition to the select group of brands that have made FAO famous. The decision to roll out the FAO Schwarz store-within-a-store concept follows successful testing in fall 2007 at Macy's on State Street in Chicago.