Macy's and FAO Schwartz Team Up

If FAO Schwarz is a hit at Macy's on State Street this holiday season, the storied toy store could start popping up at other Macy's department stores across the country.The New York-based toy retailer plans to open a shop within Macy's downtown Chicago store Nov. 1, said the companies, confirming a report in the Chicago Tribune last month.The 5,200-square-foot in-store shop located in the children's department will give shoppers "a taste of FAO," said Ed Schmults, FAO chief executive.

"If things go well, we would roll out to other Macy's, first in the northern territory and then maybe broader," said Schmults.The test comes at a time when Macy's and FAO Schwarz are striving to reinvent themselves. Macy's created a national department store when it bought and converted hundreds of regional department store chains, including Marshall Field's, to Macy's. FAO Schwarz, once a national chain, filed for bankruptcy protection in 2003, then was resurrected under new ownership the following year.

Source: Chicago Tribune