The retailer that could benefit most from Toys ‘R’ Us store closures is…
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.
To read more, click here.
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.
To read more, click here.