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Macy's, FAO Team Up

Macy's is bringing FAO Schwartz to Chicago. It's adding it as a store-within-a-store at its State Street Flagship--the former Marshall Field's that has struggled since converting over to the Macy's brand.

Another New York icon is on its way to Chicago.

Macy's Inc. plans to bring FAO Schwarz, the storied Manhattan luxury toy store, to Macy's on State Street next month, sources said Thursday, a move designed to generate traffic and lift sales that have languished since the New York department store chain converted the former Marshall Field's flagship to Macy's a year ago.

The in-store shop would give the toy store a relatively low-risk entry back into Chicago, where it operated for more than a decade, while providing Macy's a way to add some excitement to the downtown store.

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