Three retailers — Best Buy, Home Depot and Lowe’s — stand to benefit most from the closure of Sears stores, according to a CNBC report that cites a study by UBS analyst Michael Lasser. UBS found that about 80 percent of Sears’ U.S. stores are within a 15-minute drive of at least one of those three retailers.
Sears is set to generate roughly $11 billion in sales of electronics, appliances and clothing during its fiscal 2017. Appliances are expected to bring in about $3.5 billion to Sears, which also finds itself competing with JCPenney and Costco in this category.
“That’s a big chunk of change up for grabs,” Lasser told CNBC. Amazon.com, for its part, is not expected to enjoy much of a sales increase from the Sears closures, he added.
Sears currently operates about 1,100 stores. If those were to close, Best Buy’s earnings would rise by 10 percent, those of Lowe’s by 4 percent and Home Depot’s by 2 percent, UBS says.
By Edmund Mander