Sears is obviously a lost cause at this point, but I think Penney trying to be more like Sears will do just fine after Sears ends business and absorbs the last of their customers. I'd be far more worried about Macy's.
You have to realize, Sears Holdings is in a completely different level of despair. Penney has at least invested in their stores and product lines. It's really the only "mall" store I still shop at.