As Sears Holdings shutters more of its department stores under the Sears and Kmart banners, three retailers are poised to gain the most of those lost sales, according to UBS analyst Michael Lasser.
Though Sears' revenue has fallen sharply in recent years, the company is still on track to generate more than $11 billion in sales of hard and soft goods (i.e., electronics, appliances and clothing) for fiscal 2017, Lasser pointed out. That's a big chunk of change up for grabs.
Taken together, Home Depot, Lowe's and Best Buy should capture a majority of sales of appliances, home improvement items and electronics, UBS found, as Sears moves out of the mall and other strip center locations. Appliances alone are estimated to bring in about $3.5 billion annually for Sears, which has also lost share to J.C. Penney and Costco in this category.
The firm found that about 80 percent of Sears' U.S. stores today are within a 15-minute drive of a Home Depot, Lowe's and/or Best Buy location. Some appliance sales could shift to Amazon, Lasser noted, but he doesn't anticipate that category to make a drastic shift to the internet.