Macy's to Bring FAO Schwarz Into Its Stores

In an effort to attract more shoppers, Macy's Inc. is expected to announce Friday plans to open FAO Schwarz toy boutiques in all 685 Macy's stores that carry children's clothing.

As many as 275 of Macy's 812 locations, including those in downtown Minneapolis, Union Square in San Francisco and Dadeland Mall in Miami, will get the toy boutiques by fall, in time for the holiday shopping season. The rest will open in 2009 and 2010.

Under the deal, FAO Schwarz will lease the floor space and pay Macy's an undisclosed percentage of sales as rent.

The venture is part of ...