Whether Sears Fails Or Not, It Will Push Forward The Progress Of Messi Department Store And Penny'S Department Store.

According to a report released on Thursday by Investors Service Inc of credit rating agency Moodie, even if Sears's agreement to invest in saving about 400 stores through ESL can be approved by bankruptcy judges, the owners of kemate and Sears still face continuous challenges, but they can bring benefits to Macy s, JC Penney and Dillard department store (Dillard's).

Earlier this month, ESL, a hedge fund ESL operated by Sears Eddie Eddie Lampert, announced the agreement aimed at avoiding the bankruptcy of the century old shop. Pes Sears has about 700 stores around the world.

But the company has never made any profit since 2010.

In addition, it faces fierce competition from WAL-MART, Target and Amazon, all of which make it a successful challenge.

If bankruptcy protection is put forward, Sears still fails to challenge, which may mean the second time of bankruptcy or further closure of stores.

Each of these options is good for Messi's department store, Penny's department store and Dillard's department store. They have a large number of overlapping positions between Sears and the recently liquidated Sears's rival, Benton department store.

Bon ton last year announced the liquidation of its 260 store, when its sales volume was about $2 billion 500 million.

Moodie said in a statement that the liquidation had a "significant positive impact" on sales of Messi and the department store.

Moodie estimates that Sears's clothing sales are about $2 billion compared with Benton department stores.

For the department store industry, the liquidation of Bon-Ton means that the potential benefits are coming, but this is still facing more severe challenges.

The pformation of shopping patterns has weakened the impact of shopping malls on brands because they have established the ability to send products directly to shoppers, rather than relying on department stores as intermediaries.

At the same time, many department stores are located in shopping centers. With the popularity of shoppers' online shopping, these stores are becoming less convenient.

According to Moodie, even if Sears successfully overcomes these challenges, department stores will probably shrink by 3.5% in 2019.

This is based on an estimated shrinkage of 13% in 2018.

According to statistics, from 2015 to 2017, the annual compound growth rate of the industry was 3.6%.

If Sears's competitor, Penny's Department, can't turn the business out of the same obstacle as Sears faced, the situation could be even more serious.

The retailer has been working hard because it has lost track of its core customers and has developed relevant businesses during the rise of online shopping. There is a huge gap between millennial generation and previous shopping malls.

In addition, it is also subjected to heavy debt burden, excessive expansion of stores and a series of challenges of executives leaving.

Among these challenges, Sears's problem will not bring benefits to all.

Moodie wrote that shopping centres, especially in less affluent areas, may suffer losses.

These shopping centres are located in areas with fewer and less shoppers, rather than many high-end shopping centers such as Simon real estate group.

Therefore, no shop can replace Sears as a tenant, and today's shoppers are more welcome, such as Wahl Warby Parker or high-end gym like Life Time Fitness.

Moodie wrote: "for the troubled shopping mall, the extra store closing will tend to accelerate its downward trend."

For example, it quoted Midland shopping center in Midland, Michigan, and lost Sears and Penny department in two years, forcing it to liquidate in June.

Shopping centres in Washington Prime are not ideal for Penny's department store and Sears, which makes them more vulnerable in 2019, Moodie said.