Four Retailers That Could Benefit From Shuttered Sears Stores
When one door closes, another one opens — at least that is true for four retailers that could benefit from Sears' shuttered stores throughout the U.S.
The retailer closed approximately 400 stores across the country in 2017 and has plans to close another 100 by the spring. The company's shares have dropped approximately 45% since the beginning of the year and on Monday, dipped to an all-time low of $1.99/share, ultimately closing the day at $2.07, The Street reports.
With an estimated 80% of U.S. Sears stores being situated within 15 minutes of Home Depot, Lowe's or Best Buy, each of these retailers is in a prime spot to collect customers that were previously devoted to the department store. They also offer much of the same product, including appliances, home improvement and electronics, CNBC reports.
Should Sears close its remaining 1,100 stores across the U.S., it could provide a boost to shareholders from all three companies. Experts say Best Buy earnings could increase 10%, while Lowe’s could rise by 4% and Home Depot by 2%.
When it comes to athletic gear, experts predict Dick’s Sporting Goods would profit most from Sears’ loss by receiving as much as 25% of the $400M in athletic wear sales typically sold at Sears.