Can Toys 'R' Us Compete?

We were just wondering about Toys “R” Us the other day, when we randomly came across this article.The toy chain is apparently in a push to open 70,000-sf superstores around the country to combat the toy departments of Wal-Mart and other discounters. These concepts combine both the Toys and Babies “R” Us concepts. Analysts and shoppers both quoted in the article seem excited about these locations because making the stores a one-stop destination gives the retailer a competitive edge because of consumer convenience.There has an endless debate as to whether Vornado Realty Trust, KKR and Bain Capital bought Toys in 2005 simply for its real estate or to operate it as an ongoing business. Most observers we’ve spoken to have said the former, but has this changed recently? Can a retooling of Toys make it a competitor?