retail news in context, analysis with attitude

Bloomberg has a story about how “the collapse of Toys R Us is yet another blow for landlords, who now will have gaping holes of suburban retail space up for grabs. And few tenants would want them.”

The problems are many: There is already too much vacant retail space available. Many of the retailers that might ordinarily look at these opportunities have embarked on different paths, such as smaller, urban stores. Other retailers that might be possibilities also are closing stores. Splitting the stores up into smaller units is expensive and won’t necessarily be attractive to potential tenants. There already is too much retail space in the US. And, in cases where the stores are connected to malls, many of those malls already are suffering from store closures that have left vacancies.
KC's View:
I wonder how many of these stores could be turned into distribution facilities for various e-commerce players. I suspect that a sizable percentage of the stores won’t end up being stores … or at least not the kind that consumers wander into.