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Toys 'R Us filed for bankruptcy protection just as the holiday season approaches, which Stuart Varney said is a "sign of the times."

The toy store chain's demise is an effect of "the retail ice age" or "the changing of the way in which we buy stuff," Varney said on Tuesday.

"This is the Amazon effect," he explained.

Toys 'R Us finds itself in $5 billion in debt after an outside company borrowed billions to buy it out in 2005.

"If Amazon has an influence on your industry, your industry shrinks and Amazon grows," Varney said, pointing out that around 40 percent of online shopping is done on Amazon.

Because of this, ghost malls are popping up around the country, and the retail jobs are dwindling.

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