Amazon considers Purchasing Select Toys ‘R’ Us Locations

Amazon.com, Inc. (NASDAQ: AMZN) is reportedly considering expanding its physical retailer locations by acquiring locations from recently announced bankrupt Toys “R” Us Inc, according to Bloomberg, citing sources familiar with the matter.

Toys “R” Us filed for bankruptcy back in September last year and will be closing all of its U.S. locations. Operations in Canada and the U.K. will remain, but both are slowly winding down to the wire. The Canadian locations are also up for sale.

Amazon is not interested in acquiring Toys “R” Us and running the children’s toy company under new management, but rather use the empty locations, said the sources.

The vacant locations can be used for multiple purposes for Amazon. The eCommerce giant could use the locations to launch more of its cashierless retailers or even open more Whole Foods Market Inc. location.

Additional stores would allow Amazon to aggressively push its products. The company already dominates the eCommerce market by itself and has begun to push out its products into physical locations such as Kohl’s (NYSE: KSS) and its own Whole Foods locations.

Amazon also has partnerships with companies such as Sears Holdings (NASDAQ: SHLD) to sell Alexa-enabled devices at Sears’ locations.

The empty locations could also be used for a warehouse or holding storage for products or its Amazon Fresh grocery delivery to be able to deliver at an even faster rate. Amazon is already pushing out two-hour delivery service in select cities across the country.

The reports of Amazon looking into the locations could be very doubtful. In 2015, when RadioShack filed for bankruptcy and closed down its locations, Amazon was reportedly interested in acquiring some of its locations, but nothing happened, according to Bloomberg.

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