Retail Store Companies For Long-Term, Reliable Dividends? A Cash Flow Analysis

In my recent SA article on Kohl's Stores as an income stock, I noted that cash flows have shown signs of recent deterioration, although KSS still remains a cash-healthy company. But my general feeling is that because most true income investors want a stock that will pay a sustainable dividend and due to the short dividend history, it may be best to hold off on this company until management demonstrates it can make the necessary adjustments to a changing marketplace before partaking of its attractive 5+% current yield. But then questions arose….what about the other retail stores and their attractive dividends. Is this decline in cash flows affecting the entire retail industry? Is there a gradual secular decline in retail sales due to increasing e-sales and/or perhaps a market shift in how consumers shop? And if so, is this dependent on what the retail store sells or is this affecting all retail?
As an industry, apparel and department retail stores are often not considered by income investors, as these industries tend to be cyclical in nature and so it can be logically reasoned that their dividends will not be sustainable during economic recessions such as the severe dip we experienced 2007-2010. I mean, of the 20 Retail REITs around 10 years ago that are with us today, all but 3 cut their dividends. So it would seem logical that those companies paying rent to these REITs would have much the same dividend pattern. But alas, all is not as it seems.
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