According to a report published by the International Council of Shopping Centers, the news that the juvenile products giant Toys “R” Us is closing and selling most of its 736 stores may not be entirely bad.
In fact, many of the real estate investment trust companies that own Toys “R” Us locations, “are particularly well-positioned.”
The REITs may well find that they can fill up the spaces left behind by the closing Toys “R” Us stores with national chain retailers, particular where those stores are a part of a larger shopping center, rather than a separate stand-alone store.
ICSC also reports that once Toys “R” Us completes it store liquidation, “it will be good news for many landlords that have been hoping to recapture space for more profitable tenants.”
According to Bloomberg News, Amazon is looking at moving into some of the soon-to-be abandoned Toys “R” Us stores, not to continue the chain’s offerings, but to use the spaces for its own purposes.
Amazon’s possible move comes just a year after it purchased Whole Foods Market, Inc., and its more than 450 stores.
Toys “R” Us filed for chapter eleven bankruptcy protection last fall. It has said that its decision to close the vast majority of its U.S. stores was due to lackluster Christmas sales and the continued competition from retailers WalMart and Target.
While Toys “R” Us outlets typically measure between 20,000 and 50,000 square feet, some locations are as small as 20,000 square feet, and others as large as 65,000 square feet.
By Garry Boulard
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