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The second floor entrance to the Sears store at Upper Canada Mall in Newmarket, Ont.
The second floor entrance to the Sears store at Upper Canada Mall in Newmarket, Ont.
(Peter Power/Peter Power/The Globe and Mail)

Beware the love affair with department store stocks

For all the concern that department stores are heading toward irrelevancy, their share prices have been doing remarkably well these days – offering a baffling contradiction that isn’t going to end well.

The four-member S&P 500 department store index is up nearly 22 per cent this year, and that includes the dismal performance of J.C. Penney Co. Inc.