The question of whether any one store would be big enough to take over the Toys 'R' Us flagship in Times Square has been answered with a "No," as Gap Inc. made a deal last week to take over only half of the space for two flagship sized stores. The Observer reports that both the Gap and Old Navy chains will build flagships inside the space after Toys 'R' Us vacates it next year, and the arrangement will include building a third floor atop the structure.
Gap will take 6,000 square feet on the ground level with 25,000 below for a mostly underground store. Old Navy, the division of Gap Inc. which is really driving profits at the moment, will have the more visible part of the complex with the other 6,000 square feet on the main floor as well as the entire 17,500 square feet on the second floor plus another 17,000 square feet on the third floor yet to be built. This marks Old Navy's Times Square debut. It has a store on the busy 34th Street corridor, but just closed its high-profile SoHo store which is being turned into a Zara flagship. Presumably, this means that Gap will eventually close its large Times Square store at 42nd Street and Broadway, but considering how long it will take to build another floor on top of its future home, the move will probably still be at least a year off or more. More details likely to come, so stay tuned.
Gap and Old Navy Find Side-by-Side Homes in Times Square (Commercial Observer)