Macy's, FAO Schwarz create store-within-a-store concept

Quick, what name comes to mind when you think of toy stores? Pretty likely it's FAO Schwarz, the New York City-based company whose Fifth Avenue flagship was played up in the movie "Big." Now, what comes to mind when you think of department stores? There's a good chance it's Macy's, whose Manhattan store was featured in the 1947 classic "Miracle on 34th Street." Combine them and you've got two powerful brands working to drive consumer traffic.  That's what Cincinnati-based Macy's has done with an agreement to open up to 275 FAO-operated toy stores inside Macy's locations by this fall. If all goes well, there could be FAO stores inside up to 685 Macy's stores over the next two years.
 
This fall, full-size FAO Schwarz shops will open in approximately 75 Macy's locations. About another 200 Macy's stores will host smaller FAO Schwarz departments. "Our two brands have a combined history of 296 years of bringing joy and retail magic to consumers," says Edward Schmults, CEO of FAO Schwarz.. Joy and magic -- probably exactly what Frederick August Otto Schwarz had in mind when he created his company in 1862.

Writer: David Holthaus
Source: Jim Sluzewski, Macy's