FAO Schwarz To Open Private Label Stores-Within-Stores Inside Macy's

Both FAO Schwarz and Macy's are venerable brands who've each seen some hard times. Each company is around 150 years-old and can certainly claim an iconic brand status.

So the announcement that FAO will open toy stores in close to 700 Macy's department stores over the next two years is good news for the brands.

"Our two brands have a combined history of 296 years of bringing joy and retail magic to consumers," said Edward Schmults, chief executive officer of FAO Schwarz. "I am thrilled that, through Macy's, we will be able to offer the FAO Schwarz products to every American family."

About 75 full-size FAO toy stores will open across the country in the fall, along with about 200 smaller shops that will be up to 300 square feet, the companies said.

"This is an outstanding partnership that will bring toys back to Macy's in an exciting and unique way," said Lundgren, chairman, president and chief executive officer of Cincinnati-based 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."

FAO Schwarz will continue to operate own stores, including a flagship store on New York's Fifth Avenue.