Reflecting on Toys R Us: A Bumpy Ride to Liquidation
Today marks a landmark anniversary—six years since Toys R Us bravely decided to declare itself bankrupt, perhaps thinking it could pull a “Houdini” and reappear in a puff of confetti. Spoiler alert: No magic trick here; all 725 Big Box stores—spanning over 30 million square feet—officially closed their doors.
But wait! Before we start playing “Taps,” here’s a delightful twist: over 90% of these former toy palaces have found new residents. Yes, you read that right; it’s a bit like a reality show where new tenants eagerly move into a neighborhood with a slight stigma. And what type of tenant do you think is cashing in on this prime estate? You guessed it, the notorious “off-price” retailers, including Burlington Stores, Big Lots, and Ollie’s Bargain Outlet. Because who doesn’t love a good discount on, well, everything?
These three shops alone snatched up about 130 former Toys R Us locations—which, if you’re counting, is about 20% of all re-occupied sites. It seems they can’t resist a profitable “outlet.” It’s the retail equivalent of living in a mansion after a famous celebrity sells it due to “creative differences.”
But it gets better! More than 110 Toys R Us locations (around 17%, if you’re keeping score) have undergone impressive transformations into self-storage facilities, gyms, family entertainment centers, and even medical facilities. Because nothing screams fun like getting fit in an old toy store. Who knew that Pilates could happen in the aisle of a once-bustling block of Legos?
And let’s not forget the truly imaginative reuses—like a Tesla dealership, a church, and, for those with particularly dirty cars, a fully enclosed indoor car wash. Clearly, the spirit of “let’s squeeze a dollar out of anything” lives on!
The big question arises: Why is this Toys R Us real estate so hot? Well, it turns out location, location, location actually matters—especially when many stores were floundering in dense, high-traffic retail areas. They come with ample parking, easy access, and visibility that even a lost squirrel would find hard to ignore. The ideal marriage for retailers looking for a space without needing a GPS.
And let’s not forget the invaluable appeal of their building design. About a third of these stores were freestanding entities, the kind of glorious standalone structures that architects dream about. With high ceilings and no pesky interior load-bearing walls, they adapted so gracefully to their new roles that you would think they were designed for it all along. It’s almost as if the buildings themselves were whispering, “Turn me into a gym, please!”
In summary, the frenzy for Big Box real estate remains strong, especially among “2nd generation” users like Burlington and Big Lots. And while the bankruptcy of a once-beloved chain sounds disastrous, the reality is a bit more like a minor inconvenience, akin to a socks-in-the-dryer incident. Retail spaces vacated by giants like Kmart or Sports Authority often find new life faster than you can say “adaptive reuse.” The real losers may just be the enclosed malls, awkwardly waiting for the day they’ll get invited to the party.
