News

Sears' demise hurting lower-tier malls

January 29, 2019

A Moody's report reveals that lower-tier regional malls will be hurt the most due to Sears Holdings Corp. shuttering stores.

A few years ago, Sears had about 1,400 locations up and running, but that number will stand at about 400 after closing 260 more stores, according to a MarketWatch report.

"With the recent bankruptcy of Sears, store closures in well-located or otherwise well-performing malls may present the opportunity to replace or reposition a vacant Sears box with tenants that pay higher rents and will enhance the consumer draw to the overall center," the report said.

"On the other hand, malls that have struggled amid the changing retail landscape may have difficulty finding replacement tenants."

Moody’s report noted the department store sector shrank by about 13 percent last year, due mostly to Sears and Bon-Ton Stores Inc. closures. The report said another 3.5 percent decline was expected this year.