Amazon Has Considered Buying Some Toys ‘R’ Us Stores
In this article (5)
Selected sites of Toys R Us US stores may be taken over by Amazon.
Bloomberg reports the bankrupt toy retailer is in talks with the e-commerce giant over the future of an unspecified number of stores which could be converted to Amazon’s growing portfolio of offline retail spaces. The company recently acquired grocery chain Whole Foods, which has 450 sites, and has been opening physical book stores in selected US markets.
Toys R Us US is closing down more than 700 stores, many of which have moderate- to large-sized footprints suited to bulky goods or grocery retailing.
Bloomberg’s sources said Amazon is not interested in the Toys R Us brand but sees opportunities to use physical stores to deliver online purchases faster. It may possibly use the sites to demonstrate its Alexa voice-activated technology.
Amazon has previously negotiated taking over Radio Shack stores after that chain collapse, but no deal was reached.
Questions & Answers
Q.What is Amazon's primary interest in potentially acquiring Toys R Us stores?
What is Amazon's primary interest in potentially acquiring Toys R Us stores?
Amazon is not interested in the Toys R Us brand itself. They see an opportunity to utilise the physical stores to facilitate faster delivery of online purchases, and possibly to demonstrate their Alexa technology.
Q.What kind of properties are the Toys R Us stores Amazon is reportedly considering?
What kind of properties are the Toys R Us stores Amazon is reportedly considering?
Many of the Toys R Us US stores that are closing have moderate- to large-sized footprints. These properties are described as suitable for handling bulky goods or for grocery retailing operations.
Q.Has Amazon considered taking over stores from other struggling retailers in the past?
Has Amazon considered taking over stores from other struggling retailers in the past?
Yes, Amazon previously entered into negotiations to take over stores from the Radio Shack chain after its collapse. However, that particular deal did not ultimately come to fruition.
Q.How many Toys R Us stores are being considered for acquisition by Amazon?
How many Toys R Us stores are being considered for acquisition by Amazon?
The article states that an unspecified number of selected sites of Toys R Us US stores may be taken over by Amazon. Toys R Us US is closing down more than 700 stores in total.
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