The "Test Stores" In Repurposed Real Estate That May Lead To Corporate M&A

April 12, 2026 - 20:54

In a strategic move blending physical retail with corporate growth, major corporations are increasingly using small-scale real estate tests to pave the way for large-scale acquisitions. This trend sees companies repurposing vacant big-box stores to trial new concepts before deciding whether to build organically or buy an existing competitor outright.

A prime example is food distribution giant Sysco. Last year, the company launched its first-ever retail venture, "Sysco To Go," by converting two vacant Houston properties—a former Bed Bath & Beyond and an ex-Toys R Us—into cash-and-carry stores for small restaurants. The experiment was short-lived. Within months, Sysco announced a massive $29 billion acquisition of Jetro Restaurant Depot, a chain operating 166 similar stores, opting for instant scale over a slow, organic buildout.

Sysco is not alone. BJ’s Wholesale Club is testing a smaller, grocery-focused format called "BJ’s Market," having opened two locations in repurposed Toys R Us and Winn-Dixie buildings. The concept's success could lead to more adaptive reuse projects or, following Sysco’s playbook, the acquisition of a regional grocery chain to accelerate expansion.

Similarly, Costco is experimenting with a "Home Showroom" concept for furniture and appliances, utilizing former Toys R Us and Sears Outlet stores in Alaska and Puerto Rico. While growth has been methodical, scaling this niche could position Costco to acquire an existing furniture retailer.

Perhaps the most watched player is Amazon. Despite shuttering several homegrown concepts like Amazon Books and Amazon Fresh, the company continues to test formats, most recently announcing plans for a large-format store in Illinois. Given Amazon's history—its most successful physical retail move remains the acquisition of Whole Foods—industry observers speculate that scaling this new concept could lead to a monumental purchase, with potential targets ranging from BJ’s Wholesale to a mass merchandiser like Target.

These cases illustrate a clear corporate strategy: use low-risk real estate tests to validate a concept, then leverage the findings to execute a transformative merger or acquisition for immediate market dominance.