It’s been a rough stretch for beleaguered retailer Bed Bath & Beyond, which is on track to close 400 stores to avoid bankruptcy.
And other chains aren’t wasting time when it comes to filling the many thousands of square feet left behind: TJ Maxx, HomeGoods and Ross have already set up shop in vacant stores, CNN reported.
Related: Bed, Bath, Beyond & Bankruptcy: Low Inventory Threatens Chain
New retail space has been difficult to come by since the 2008 financial crisis and the steady growth of ecommerce. That lack of new supply is driving positive net absorption, rising rents and lower vacancy rates, which will likely continue in 2023, according to CBRE, a global leader in commercial real estate.
Retail landlords and real estate analysts say Burlington, Five Below, Nordstrom Rack and Planet Fitness might also take advantage of Bed Bath & Beyond’s exit, per CNN.
“For us, the biggest source of new store locations comes from other retailers closing stores,” Burlington CEO Michael O’Sullivan said on an analyst call in February. “So many of our most productive locations were formerly Circuit City or Toys ‘R’ Us or Sports Authority.”
Related: A College Student Cashed Out a $110 Million Profit on Bed Bath & Beyond
Bed Bath & Beyond Inc is down more than 96% year over year.