Macy's and FAO Schwarz have inked an exclusive agreement which will see the opening of up to 275 FAO-operated toy stores in Macy's locations across the US this fall.

Under the agreement, FAO Schwarz becomes the exclusive toy department in Macy's stores and will continue to independently own and operate its own stores, including its Fifth Avenue flagship outlet in New York.

This fall, full-size FAO Schwarz shops, ranging in size between 1,000 and 3,500 square-feet will open in approximately 75 Macy's locations. Another 200 or so Macy's stores will host smaller FAO Schwarz departments between 200 and 300 square-feet in size. The deal also extends to web real estate, where FAO products will be offered on macys.com.

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