FAO Schwarz to open toy stores within Macy's

By Joyzelle Davis, Rocky Mountain News (Contact)

Friday, May 16, 2008

Seven years after pulling up stakes, FAO Schwarz is finally returning to Colorado - this time inside Macy's department stores.

FAO Schwarz on Friday announced it will open toy stores in close to 700 Macy's over the next two years. 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.

The companies don't yet have a specific list of what stores will roll out the FAO Schwarz shops first, said Macy's spokesman Jim Sluzewski, but he added that every Macy's store that has a children's department will eventually have an FAO Schwarz.

FAO Schwarz had an outpost in Cherry Creek Shopping Center until 2001, when the retailer began shuttering stores nationwide in the face of increased competition from big-box retailers like Wal-Mart, Target and Toys "R" Us. Today, FAO Schwarz has just a few flagship stores, including its Fifth Avenue store, which attracts more than 3 million visitors each year.

FAO Schwarz gave its first Macy's store-within-a-store a trial run in Chicago late last year.

"This is an outstanding partnership that will bring toys back to Macy's in an exciting and unique way," said Terry Lundgren, chairman, president and CEO 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 sell its private-label collection at Macy's stores, adding another line of exclusive merchandise. The department-store chain sells products designed for its stores by Martha Stewart and Donald Trump. It will begin selling Tommy Hilfiger men's and women's sportswear exclusively later this year.

davisj@RockyMountainNews.com or 303-954-2514.