I visited the toy shops in Macy's and Target to see how they compare and the department store provided a better experience by far

Ann Matica/Insider

• This year, Macy's and Target partnered with toy brands to create in-store experiences for holiday shoppers.
• For Toys 'R' Us and FAO Schwarz, which have both filed for bankruptcy in the past, these partnerships could help revive the nostalgic brands.

This year, big box stores like Macy's and Target are gearing up for the holiday season by partnering with popular toy brands to create in-store experiences for shoppers.

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In July, Macy's announced it would be adding Toys 'R' Us shops to 451 of its locations after a successful collaboration with the brand to sell toys online the previous year.

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Source: Forbes

The partnership might just be the revival the Toys 'R' Us brand needs to return to the spotlight after falling into an estimated $5 billion in debt and liquidating in 2017.

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Source: Insider and The Washington Post

Target seems to be jumping on the toy store bandwagon as well. In September, it announced a multiyear agreement with the 160-year-old toy brand FAO Schwarz. The deal includes an assortment of over 120 FAO Schwarz toys exclusively sold at all Target locations, on Target.com, and in FAO Schwarz stores.

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Source: Markets Insider

The brand filed for bankruptcy twice in 2003 before getting bought by the hedge fund D.E. Shaw the next year. In 2008, things seemed to be improving for the brand when it became the exclusive toy department in all Macy's stores and on the department store's website.

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Source: Forbes

However, its store presence at Macy's was abruptly halted in 2009 when FAO Schwarz was bought yet again, this time by its competitor Toys 'R' Us. Years later, the toy giant was forced to close its iconic flagship location on Fifth Avenue in New York City.

AP

Source: Insider

Things finally started to look up for FAO Schwarz once it was sold to ThreeSixty Group, which has helped the brand open a new store in Manhattan and once again partner with a big retailer such as Target.

Business Insider/Jessica Tyler

Source: Insider

After learning about the complicated and intertwined histories of the two toy companies, I decided to visit the Macy's and Target stores across from each other in Herald Square New York City, to see how the two retail toy store experiences matched up.

Ann Matica

My first stop was the Toys 'R' Us store in Macy's, which covers 14,000 square feet of retail space. Close to the entrance, a Lego depiction of the famous Macy's Thanksgiving Day Parade was on display.

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There were shelves of toys set up from well-known movie franchises. For fans of 'Harry Potter,' wizard wands and fluffy Hedwig stuffed animals were for sale.

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A whole section of the store was dedicated to Barbie toys, including a mermaid Barbie doll retailing for $29.99 and a sleek silver convertible for $32.99.

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I also came across the store's Barbie Dreamhouse display, which featured a waterslide and a gated-off area with a pony.

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The "Star Wars" section had everything from Boba Fett helmets to lightsabers that were priced between $16.99 and a whopping $278.99.

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Bright green Baby Yoda plushies that are $37.99 a pop looked particularly cute stacked next to each other on a shelf.

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In the middle of the store was a wall stacked high with Marvel superhero figurines that towered above me.

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Along with shelves of toys for customers to browse, there were also an ample number of displays set up for photo ops.

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Shoppers even have the chance to snap a picture with the Toys 'R' Us mascot Geoffrey the Giraffe in a vintage yellow taxi cab.

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The store felt like a mix between a toy shop and a kids' playground thanks to the play structures and Play-Doh tables that were occupied by children and their parents.

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Stations with blocks were also set up on the walking paths to help entertain young children.

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Toys 'R' Us has toys for all ages, starting as young as a couple of months old. A shelf was set up with Peppa Pig house sets and ice cream trucks for $22.99 each.

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There was no shortage of stuffed animal options in varying sizes and shapes.

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For older children, there were outdoor toys for sale like skateboards and hoverboards that cost anywhere from $149.99 to $511.

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A Nerf tent with aiming games was also set up to keep kids occupied while their parents shopped.

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The store sold a variety of new toys, including these LOL Surprise! dolls.

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There were also some classic board games for sale, such as Candy Land and Clue.

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I also found Rubik's cubes and Uno card sets on a shelf nearby.

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Keychain versions of Geoffrey were on sale by the check-out area for customers looking to bring home a Toys 'R' Us souvenir.

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There were also special Toys 'R' Us shopping bags in the shape of stars available to purchase for $3.49.

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Macy's had signs set up advertising special events at the location, including the chance to have brunch with Geoffrey, Peppa Pig, and Batman. The tickets are a bit pricey at $35 for kids 12 and under and $45 for adults.

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Even with only one employee manning the register, the check-out line moved quickly.

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While my experience at Macy's Toys 'R' Us shop felt hard to top, I went across the street to give Target's in-store collaboration with FAO Schwarz a fighting chance.

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I took the escalator down to the lower level, where the toy section is situated.

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The entire toy section was made up of seven aisles and was located across from the children's clothing area.

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Although the area wasn't as heavily peppered with signs as Macy's had been, the FAO Schwarz-branded toys tipped me off that I was in the right place.

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Smaller versions of the company's famous floor piano, which Tom Hanks danced on in the 1988 movie "Big," were for sale at Target for $39.99.

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There were also FAO Schwarz princess castles for $29.99 and a luxury jet-play luggage set complete with an eye mask and neck pillow for $59.99.

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Unlike the extremely wide range of price points at Macy's, customers can expect the toys to be priced between $9.99 and $149.99, with 50 toys in-store under $20.

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A whole shelf was dedicated to puzzles ranging from 1,000 pieces to 41 pieces for differing age groups.

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Like at Macy's, Target stocked its shelves with some nostalgic board games like Operation and Connect Four.

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While there weren't any Play-Doh play tables at Target to help entertain children, there were several Play-Doh toy kits available to be purchased.

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The kinetic sand kit at Target seemed a bit underwhelming after I had just seen a whole station filled with kinetic sand for kids to play with at Macy's.

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Target also had some Peppa Pig toys for young fans of the popular kids' TV show.

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Compared to the large Marvel section at Toys 'R' Us, the couple of figurines, Lego sets, and Iron Man masks available at Target were a little disappointing.

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However, the Star Wars Wookie plushie was just as cute as the Baby Yoda ones I had found at Macy's and slightly cheaper at $29.99.

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The Lego section was smaller than at Macy's, but it had a lot of similar sets, including Star Wars and Minecraft.

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Lego prices were marginally cheaper at Target, which charged $41.99 for this tiger set that Macy's charged $49.99 for.

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Target had a larger collection of dolls, including Barbies and the LOL Surprise! ones I had also spotted at Macy's.

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Signs offering 25 percent off one toy or kid's book through the Target app were posted around the aisles. Seeing the books made me realize that, while there may have been books at Macy's, they hadn't been clearly visible to me like they were at Target.

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To celebrate the 160th anniversary of FAO Schwarz, the company launched a capsule collection of toys with some all-time favorites under $25.

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Some of the toys on the list included Hot Wheels collector sets and UNO decks.

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The card game section also had options for adults like Cards Against Humanity and Midnight Taboo.

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Next door was an aisle full of Nintendo games like Animal Crossing and Super Mario Party for kids and adults to enjoy.

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Although there wasn't a tent to test the Nerf Blasters in like at Toys 'R' Us, Target did have a decently sized collection available.

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While Target's toy section was less than a quarter the size of the huge Toys 'R' Us space in Macy's, I was still impressed with the wide selection of toys offered.

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Although the Target collaboration has much to offer with specialized FAO Schwarz toys and even card games for adults, the Macy's Toys 'R' Us store was undoubtedly the superior experience due to its huge selection of toys, in-store play areas, and the perfect touch of brand nostalgia.

Ann Matica