Is Toys 'R' Us Taking Baby Steps?

The retailer may sell its flailing toy business and focus on Babies 'R' Us. Its trump card: Real estate worth millions

Toys are everywhere. But real estate -- especially the prime locations that retailers seek -- isn't as plentiful. Those two facts, say analysts, underpin an announcement from Toys 'R' Us (TOY ) on Aug. 11 that it may sell its flagship Toys 'R' Us business while hanging on to its 200 Babies 'R' Us stores. By selling the money-losing Toys 'R' Us stores, the retailer could focus on its profitable Babies 'R' Us segment and also reap billions of dollars from valuable Toys 'R' Us real estate.

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