But a Toys "R" Us spokeswoman says that the conversion of theUnion Square store into Babies "R" Us will not be a strategy thecompany plans to employ across the country. "We have been lookingfor a location in Manhattan for a while," she says, explaining thatthe Toys "R" Us flagship store in Times Square would sufficientlyrepresent the chain in that borough.

The move is a "slam dunk" for Toys "R" Us, says Chris Byrne, aNew York City-based independent toy consultant. "It really givesthem a beachhead in Manhattan. It seems like a very smart move forthem at this time." Byrne predicts that the company could open moreBabies "R" Us units in the city, but doubts the retailer will begina chain-wide conversion of Toys "R" Us stores in Babies "R" Usunits.

The spokeswoman says the company has not released expansionplans for the Babies "R" Us chain, but says they could go into thespaces of 15 former Kids "R" Us stores the company has retained.Toys "R" Us closed that chain last year and sold most of its formershells to Office Depot in the spring. The company currentlyoperates 215 Babies "R" Us units across the country.