Target could reap $600 million in sales from Toys 'R' Us liquidation

Target Corp. TGT, -1.78% could add $600 million in sales from the Toys 'R' Us store closings, according to a report from Credit Suisse. Their analysis shows 90% of Toys 'R' Us stores and 96% of Babies 'R' Us stores are within five miles of a Target location. "There is plenty of competition as we discuss later, but Target's overlap is higher than in recent case studies, and should be positioned to take a fair share," analysts led by Seth Sigman wrote. Analysts estimate that Target will capture 15% of Toys 'R' Us store sales, 5% of Babies 'R' Us sales and 5% of online sales. Eighty-two percent of Toys 'R' Us stores are within five miles of both a Target and a Walmart Stores Inc. WMT, -1.18% location. Target shares are up nearly 6% for the past three months, and up 29.2% for the last year. The S&P 500 index SPX, -2.52% is up 13.2% for the last 12 months.