Executive Briefings

Sears May Sell Off Name Brands: Craftsman, DieHard and Kenmore

It's been 11 years since hedge fund magnate Edward Lampert merged Sears with another ailing company, Kmart Holding, which he bought out of bankruptcy in 2003, to form Sears Holdings. Sales have plunged by almost half, the result of defecting customers and the sundering of assets such as the Lands' End clothing brand in 2014.

Sears May Sell Off Name Brands: Craftsman, DieHard and Kenmore

Sears has lost more than $8bn in the past five years. Its stock, once trading above $100, closed at $13.30 in late May. Some mall owners are eager to replace its stores with those of more vibrant tenants. And the company said it would consider selling some of its crown jewels: the Kenmore appliance, DieHard battery, and Craftsman tool brands.

The retailer has suffered from an industrywide decline as Americans spend differently and on different things. People are buying fewer clothes, spending more on dining and other experiences, and saving more. In the mid-1980s, 45 percent of consumer spending went to goods, the remainder to services. Today those figures are 31 percent and 69 percent, respectively, according to Customer Growth’s Johnson. When Americans do buy goods, they’re shifting where they shop—not just to online, but to off-mall retailers, such as Walmart, Costco Wholesale, and T.J. Maxx.

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Sears has lost more than $8bn in the past five years. Its stock, once trading above $100, closed at $13.30 in late May. Some mall owners are eager to replace its stores with those of more vibrant tenants. And the company said it would consider selling some of its crown jewels: the Kenmore appliance, DieHard battery, and Craftsman tool brands.

The retailer has suffered from an industrywide decline as Americans spend differently and on different things. People are buying fewer clothes, spending more on dining and other experiences, and saving more. In the mid-1980s, 45 percent of consumer spending went to goods, the remainder to services. Today those figures are 31 percent and 69 percent, respectively, according to Customer Growth’s Johnson. When Americans do buy goods, they’re shifting where they shop—not just to online, but to off-mall retailers, such as Walmart, Costco Wholesale, and T.J. Maxx.

Read Full Article

Sears May Sell Off Name Brands: Craftsman, DieHard and Kenmore