Who Is Taking the Vacant Toys“R”Us Stores?

Executive Summary

• With June 29 marking its final day in business in its home market, Toys“R”Us has now closed down all of its stores in the US. The impact of the toy retailer’s departure on US retail is significant. We estimate 28.6 million square feet of retail space has been left vacant with the closure of Toys“R”Us, and in terms of the number of stores, this represents 21% of total store closures announced year to date in the US.
• The vacant Toys“R”Us stores look set to be filled by a diverse array of tenants such as discount stores, health and wellness, specialty grocers, home improvement, furniture, arts and crafts and entertainment. Brands including Dollar General are likely take on parts of vacant stores, since they tend to operate smaller store formats and are unable to fill an average Toys“R”Us store.
• According to real estate investment firm and owner of several former Toys“R”Us stores Kimco Realty, some of the likely candidates to fill the vacant spaces left behind by the toy retailer include Dollar General, TJ Maxx and Burlington, together with organic grocery retailer Sprouts Farmers Market, foodservice retailers such as KFC and Chipotle and healthcare service provider GoHealth Urgent Care.