I don't know--with the ease of purchasing these things on the Internet, if that's his purpose, I doubt it will be too successful.
More likely, he's just trying to get rid of these stores, which don't exactly attract the most upstanding people. Say what you want, the 2006 Times Square is a lot better place to visit than the pre-1990s Times Square that was filled with crooks, bums, and porn shops.
Larry Flynt chose Fort Lauderdale to open up his "Hustler Hollywood" store, smack dab in the middle of big-city traffic. Huge marquee signs advertising it, too. The windows are clear so you can see everything inside driving by. The city allowed it because at least 51% of the merchandise is not sex-related, therefore it wasn't considered a "sex shop."