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The retailer that could benefit most from Toys ‘R’ Us store closures is…

12/19/2017
As Toys “R” Us mulls another round of store closures, Target is positioned to benefit most from the fallout.

The embattled toy retailer is considering closing more than 100-plus stores. If this plan materializes, Target is primed to pick up some lost sales, according to CNBC.

According to a note to his clients, UBS analyst Michael Lasser said in the report, “93% of Toys “R” Us stores are within a 15 minute drive of a TGT [Target]. TRU and Target are exposed to [a] similar consumer demographic.”

Based on Lasser’s estimates, Target’s store proximity, in addition to big investments in its toy department — including beefing up an exclusive selection for kids — could boost same-store sales by 0.45%. This is based on the closure of an estimated 183 Toys “R” Us stores.

Walmart would not benefit as well from the same scenario, and would only experience a potential lift of about 0.10%, the report said.

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