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Macy's makes room for FAO Schwarz toys

By Mark Albright, Times Staff Writer
Posted: May 16, 2008 07:05 PM

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Toy departments will return to Macy's after an absence that stretches back to the 1960s. The department store chain on Friday disclosed a deal with FAO Schwarz, a 146-year-old toy retailer that has been looking for new ways to compete with Target, Wal-Mart and Toys "R" Us since emerging from bankruptcy. Schwarz will supply products, most of them exclusive, for new branded toy departments in 275 Macy's stores by fall. FAO chief executive Ed Schmults told the St. Petersburg Times in January that a test in a Chicago Macy's was successful enough that he envisioned departments in 400 Macy's within a few years. The deal announced Friday puts them in 685 of 850 Macy's stores within two years.