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May 17, 2008 / 9:59 AM

FAO Schwarz to open Macy's outlets

FAO Schwarz store on New York City's 5th Avenue on Dec. 3, 2003. (UPI Photos/Ezio Petersen)

FAO Schwarz store on New York City's 5th Avenue on Dec. 3, 2003. (UPI Photos/Ezio Petersen) | License Photo

CHICAGO, May 17 (UPI) -- FAO Schwarz and Macy's department stores plan to implement a new agreement in which the toy retailer will open outlets in 700 Macy's stores.

The first 75 full-sized FAO Schwarz stores will open in Macy's in the fall, along with another 200 smaller toy shops, The Chicago Tribune said. The newspaper said the first trial run of the Macy's-FAO Schwarz combination was conducted at the department store's State Street location in Chicago.

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"This is an outstanding partnership that will bring toys back to Macy's in an exciting and unique way," Terry Lundgren, president and CEO of Macy's, told the Tribune.

FAO Schwarz also will market its private-label collections its new Macy's locations.

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