PITTSFIELD, Mass. (Dow Jones/AP) — Sears, Roebuck and Co. said Tuesday KB Toys will set up "stores-within-stores" at 600 Sears stores in the United States and Puerto Rico this holiday season.

The deal extends the relationship between the nation's largest department-store chain and privately held KB Toys of Pittsfield, Mass.

Terms were not disclosed.

Sears, which has 860 department stores, had KB Toys at 29 stores in 2001; then 77 in 2002.

KB Toys will sell at Sears from mid-October through early January as part of the Christmas Shop.

KB Toys is one of the nation's largest toy retailers, with more than 1,300 stores nationwide.

Sears, of Hoffman Estates, Ill., had 2002 revenue of $41.37 billion.