【破产新闻】3 Potential Winners and 1 Big Loser From Sears' Bankruptcy

Despite Sears Holdings(NASDAQOTH: SHLDQ) diminished relevancy over the past decade, its bankruptcy is still going to create upheaval in the retail world.

While Sears plans to continue operating, at least for a little while, it is going to be a much smaller business. Chairman Eddie Lampert's plan is to shed all but around 400 of the company's most profitable stores, which means the customers who did shop those other locations will be looking for another place to go.

Products like appliances, consumer electronics, hardware, and lawn and garden equipment remain Sears' biggest sellers, generating $1.4 billion in sales last quarter, while apparel and soft home goods contributed another $700 million. Below are those retailers in various categories likely to benefit most from Sears' demise, and one group that will be hurt the most.

 
Abandoned store

Image source: Getty Images.

Appliances

Even though the prestige of the Kenmore brand has dwindled over the years, its appliances still enabled Sears to be a top destination for appliance buyers. Lowe's(NYSE: LOW) became the largest appliance retailer in 2013, followed by Home Depotand Best Buy. The latter surpassed Sears to become the third-largest appliance retailerin 2017.

But it may be J.C. Penney (NYSE: JCP) that comes out best. It brought back appliances two years ago after a 33-year absence, and because it shares over 300 mall locations with Sears, shoppers could migrate to its stores.

Some analysts believe that Sears' store closures could actually hurt J.C. Penney, as having a "dark anchor store" could cause mall traffic to decline. That might be the case if it were a Macy's or Target store that was closing. However, it's doubtful that Sears was driving much customer traffic to those malls anyway.

Hardware

Sears sold its Craftsman tool brand to Stanley Black & Decker (NYSE: SWK) last year for $900 million, but did carve out for itself an arrangement that allowed it to receive royalties for a time from all Craftsman tool sales that Stanley generated. The deal also allowed Sears to continue manufacturing and selling Craftsman tools without paying any royalties for 15 years.

Such sales are likely to be insignificant going forward. But Stanley recently announced that it would begin supplying Lowe's with Craftsman tools. Those sales could increase, now that competition from most Sears stores will be eliminated, giving Stanley a lift from the situation.

Apparel

Analysts at Cowen & Co. calculate that there are 740 Walmart stores and 583 Targetstores within a five-mile radius of a Sears store, as well as almost 1,400 stores belonging to TJX Companies, whether it's a Marshalls, T.J. Maxx, or HomeGoods. All should be able to pick up some customers.

However, it is J.C. Penney (along with Walmart and Burlington) that has the best chance to gain in the apparel market, because Penney's customer profile most closely matches the Sears shopper. Also, because J.C. Penney gets roughly half of its revenue from apparel sales, it could be the retailer that does best here. The proximity of the two companies' mall-based stores to each other also bodes well for J.C. Penney's apparel business.

Shopping malls

Even shopping malls can benefit from Sears closing stores. It often paid rent below market rates on its properties, and malls that divide up empty Sears stores can bring in substantially more rent from new tenants.

source:https://finance.yahoo.com/news/3-potential-winners-1-big-210500275.html

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