A Christmas without Toys R Us has created "good news for everyone that could possibly sell toys," retail analyst Liz Dunn told CNBC on Monday.

Dunn, founder and CEO of Pro4ma, said retailers have been investing to take advantage of the newfound void in the toy market, which was created by the collapse of the legendary toy seller and the closure of its more than 800 stores across the nation earlier this year.

Walmart and Target have invested in the space, she said on "Power Lunch."

"Target is out saying there's $100 billion up for grabs not just from Toys R Us but from all of these retailers that have gone out of business and closed their doors."