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FAO Schwarz, Toys 'R' Us Merger Stings Macy's

It's no secret that the sale of venerable and high-end FAO Schwarz to mass market giant Toys 'R' Us is the talk of the retail world, but writer Lisa Biank Fasiq focuses on the merger's effect on a third retailer -- Cincinnati-based Macy's.

While FAO Schwartz has just two stand-alone stores (in New York and Las Vegas), it has a far wider brick-and-mortar presence via boutiques it operates in 260 Macy's locations under a deal completed a year ago this month. While the three dedicated stores will be taken over by Toys 'R'" Us, the Macy's locations will now be discontinued come November. And FAO boutiques planned for an additional 415 Macy's locations will never come to fruition.

Of course, shoppers at those Macy's stores probably won't have to go far to shop at Toys 'R' Us. As pointed out in articles too numerous to mention, the retailer has 600 stores in the U.S. and hundreds more in 33 other countries.

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