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Woes at Sears could lead to higher sales for these chains

Published 02/12/2018, 04:11 PM
© Reuters.  Woes at Sears could lead to higher sales for these chains
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  • As the retail footprint of the Sears (NASDAQ:SHLD) chain becomes smaller, more of the company's $11B in annual retail sales are up for grabs for rival chains.
  • UBS thinks Home Depot (NYSE:HD), Lowe's (NYSE:LOW) and Best Buy (NYSE:BBY) are the obvious beneficiaries of more electronics, home improvement and appliance sales due to the smaller Sears store base.
  • The firm bases its thesis off the fact that 80% of Sears U.S. stores are within a 15-minute drive of one or more of the three chains.
  • Pier 1 Imports (NYSE:PIR), Williams-Sonoma (NYSE:WSM) and Dick's Sporting Goods (NYSE:DKS) are also seen catching a comparable sales lift.
  • As for Sears, UBS notes that with interest rates set to rise and corporate tax reform not a big benefit for the unprofitable company, the "woes will only accelerate going forward" this year.
  • Now read: Sears Holdings: ESL's Financing Comes At A Great Price


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