Thread Number: 76721
/ Tag: Modern Automatic Washers
The Sad End of Kenmore |
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Post# 1005809   9/1/2018 at 23:07 (2,086 days old) by Ultramatic (New York City)   |   | |
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How the once-proud Kenmore brand ended up on the scrap heap
The demise of the once-storied Kenmore appliance brand is the perfect embodiment of Sears' collapse
At the start of this century, Kenmore was one of the top appliance brands in the country, and was only available at Sears stores. Sears was the largest seller of other appliance brands too, and it dominated that market. No other retailer was even close.
Kenmore had such brand cachet that appliance makers would design some of their best products using the Kenmore name instead of their own. They were eager to stay in Sears' good graces so they could sell their own products at the popular department store. Many launched their newest and best features on Kenmore appliances instead of their own.
"When Whirlpool came up with an idea, the first time customers saw it was often on a Kenmore product," said Mark Cohen, the director of retail studies at the Columbia Business School and a former CEO of Sears Canada.
That's no longer the case. Experts say Sears' share of the appliance market is a fraction of what it once was. And Sears and Kenmore have become an afterthought for appliance manufacturers.
"Whirlpool didn't stop innovating, they just stopped using Sears as the launch partner," said Cohen.
That has left Kenmore products uncompetitive.
"It's the equivalent of a flip phone in the smartphone era," said Sean Maharaj, director in the retail practice at consultant AArete.
Whirlpool(WHR), a company that got its start more than a century ago by selling at Sears, pulled its products from Sears stores last year, along with its Maytag, KitchenAid and Jenn-Air brands. The power dynamic between the Whirlpool and Sears completely turned around. Whirlpool said that Sears accounted for only 3% of its sales worldwide.
Cash-starved Sears has been trying to find someone to buy Kenmore for years. It sold the Craftsman tool brand to Stanley Black & Decker (SWJ) in a deal valued at $900 million. But it hasn't found much interest for Kenmore
Fifteen years ago, Sears valued Kenmore at $2 billion, according to retail consultant Steve Dennis, who was once vice president of corporate strategy for Sears. Dennis said Sears had conducted the analysis in case it wanted to sell the brand. Now Sears CEO and primary shareholder Eddie Lampert is offering to have his hedge fund buy Kenmore for just $400 million. The independent members of the Sears board are weighing that offer.
A Sears spokesperson said it's not clear when the company will make a decision on Lampert's offer for Kenmore. He also couldn't comment on past or current market share or revenue numbers for Kenmore or overall appliance sales.
As much as the value of Kenmore has declined over the years, the value of Sears has fallen even more.
Shares of Sears Holdings (SHLD), which owns both Sears and Kmart, lost more than 80% of its value in the last year. The company's market value is just $150 million. So the Kenmore brand, as battered as it is, is worth more than twice as much as its parent company.
Amazon(AMZN) and online sales are not the primary problem for the appliance sales. Only about 2% of large appliance sales are completed online, according to research firm NPD, far below the penetration of other items like clothing or electronics. A year ago Sears reached a deal with Amazon to sell Kenmore on its site for the first time, but it did little to boost sales.
Experts say the more serious competitive problem for Kenmore was the rise of big box rivals, such as Home Depot (HD), Lowe's (LOW) and Best Buy (BBY). The growth of LG, Samsung and other Asian brands hurt Kenmore too.
When Sears started to lose market share, it responded by cutting costs, cutting back on research and development and marketing support that the Kenmore brand needed to be competitive.
"They really trimmed the budget and hoped Kenmore could hold the ground on its own," said Maharaj. "But most brands are living breathing organisms. They need to be nourished, nurtured and almost coddled so they can grow and thrive."
Sears' store closures have hurt too. The company had 3,500 Sears and Kmart stores when they merged in 2005. There are fewer than 1,000 today. Fewer locations are selling Kenmore products, and customers are concerned about Sears' long-term future. Those fears only got worse last year when Sears warned that there is "substantial doubt" that it will be able to remain in business, Cohen said.
"It's a durable good. People have concerns that they'll be able to service it, that they'll be able to get the part they need eight years down the line," said Cohen. "They have to be confident that someone will be there to stand behind the product." CLICK HERE TO GO TO Ultramatic's LINK |
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Post# 1005903 , Reply# 2   9/3/2018 at 07:22 (2,085 days old) by Yogitunes (New Jersey)   |   | |
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Kenmore used to be a brand of quality and service.....
Sears made bad choices, basically ran it into the ground, and now asking 400 million for just a name?.... and a bad name at that.... it would take twice that amount just to rebuild that name, and even then don't think it will venture far... to think, Sears had a good thing going for years with the catalog shopping, yet abandoned it for low sales, right at a time when internet shopping was taking off....then tried to jump back on the bandwagon, but it was too late..... Sears lost out long ago with holding steady to pricing, with no flexibility…..while others, while other stores and online shopping was offering discounts one way or another.... a sad ending to what was once a go to place for just about anything... |
Post# 1005947 , Reply# 3   9/3/2018 at 13:59 (2,084 days old) by Pierreandreply4 (St-Bruno de montarville (province of quebec) canada)   |   | |
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I wonder what canadien who owns Kenmore washers and dryers older models and newer models will do if they are in need of repair or a particular part so sad that sears closed down all the sears stores in Canada are close now a canadien design sears Kenmore washer
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Post# 1005950 , Reply# 4   9/3/2018 at 14:48 (2,084 days old) by gansky1 (Omaha, The Home of the TV Dinner!)   |   | |
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I find it curious that a Chinese or other foreign firm hasn't bagged the Kenmore brand, but, like Martin says, it's not worth what it once was. Since Haier now has the GE name in it's claw, they don't have much need for the Kenmore name, even at a pink clearance-sticker price.
Some KM appliances are still sourced from Whirlpool, dishwashers, laundry, etc., so while there is a relationship there, it's hard to imagine that WP would even blink twice if the Kenmore brand were dissolved or sold to a Midea-like manufacturer, to be slapped on cheapo freezers and dorm microwaves. |
Post# 1005963 , Reply# 5   9/3/2018 at 17:36 (2,084 days old) by Frigilux (The Minnesota Prairie)   |   | |
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Sears may not mean much to younger AW members, but for me, who grew up in the 1960s-1970s, it was the 900-lb. gorilla on the block. Montgomery Wards and JC Penney were Sears’ smaller siblings. You’ve heard me lament how everything in our house came from Sears—even my first guitar amp in 1971–but it goes to show just how pervasive the retailing giant was. Small towns (such as the one I grew up in) had a catalog store and everything from appliances to tires to TVs to bath towels could be picked up in a few days.
The article pointed out Kenmore was so important to Whirlpool that it, and not the corporation’s own nameplate, often got the cutting-edge features first. Very true! Times change, huge mistakes were made...and now Sears finds itself on the precipice of its demise. |
Post# 1005975 , Reply# 8   9/3/2018 at 19:35 (2,084 days old) by Pierreandreply4 (St-Bruno de montarville (province of quebec) canada)   |   | |
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Post# 1005984 , Reply# 9   9/3/2018 at 20:13 (2,084 days old) by IowaBear (Cedar Rapids, IA)   |   | |
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We had two K-Mart stores here, one closed in 2012 and the other in 2013. Our Sears store just closed in July. All three of them had been open here since I can remember. (I'm 50.) I had given up on the K-Mart stores long ago but still bought things from Sears. Last major appliance I bought was a Kenmore wall oven in 2011 and it was a great deal at the time during one of their 50% off sales.
As a little kid I spent many hours spent going through the Sears, Wards and JCP catalogs trying to decide on what to ask for for Christmas and birthdays.
It was an early and painful lesson of our economic status...I could never get the "deluxe" editions of anything. Like the Tyco "Road & Rail" that was a combination race set and model railroad. I had to settle for just a train set and a small one at that. Still bitter...LOL. |
Post# 1006005 , Reply# 10   9/4/2018 at 04:39 (2,084 days old) by Ultramatic (New York City)   |   | |
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I too have many fond memories of Sears. My grandmother on my dads side started the love affair with Sears back in the 1930's when she ordered a chandelier from the catalog. Stoves, washing machines, refrigerators and air conditioners came mostly from Sears (and my dad owned an appliance store!). Our local Kmart is slated to close October 31st. Although our Sears will remain open, at least for now.
Sears management ran the store and Kenmore to the ground. |
Post# 1006018 , Reply# 12   9/4/2018 at 06:53 (2,084 days old) by Pierreandreply4 (St-Bruno de montarville (province of quebec) canada)   |   | |
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if you look at this link its a trip down memory lane for the Kenmore brand of appliances
www.kenmore.com/history... |
Post# 1006045 , Reply# 13   9/4/2018 at 09:31 (2,084 days old) by DADoES (TX, U.S. of A.)   |   | |
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Post# 1006052 , Reply# 14   9/4/2018 at 10:48 (2,083 days old) by combo52 (50 Year Repair Tech Beltsville,Md)   |   | |
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Post# 1006100 , Reply# 15   9/5/2018 at 00:02 (2,083 days old) by eurekastar (Amarillo, Texas)   |   | |
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I swore off Sears because of the service they provide for repairs. Last November, I had a problem with my Kenmore Elite Refrigerator (LG built). This same refrigerator had been repaired three times under warranty, but the warranty had expired. It took two weeks to get a technician to even come. He took 15 minutes to diagnose the problem for which I paid $129 (I think it was). Then I had to pay up front another $400 for the repair parts, which they shipped to my house. It then took another two weeks to schedule an appointment. The day the technician showed up the second time, I was standing in my kitchen sipping coffee when I saw him drive up. He sat in front of my house for two or three minutes then left. He never got out. I thought he may have forgotten something at his shop and would soon return. He never did. After several phone calls, I finally got someone to tell me that he claimed that no one was home. But the front door was standing wide open, so it was obvious that I was home! I was then informed that it would be another two weeks to schedule yet another appointment. I told the woman to cancel everything and I would return the parts. She assured me that I would receive a refund for the parts. Almost a year later, I'm still waiting. They wasted my time, especially given that I had to take off work for two service calls. I bought a Samsung refrigerator that I'm very happy with. But I sure didn't buy it from Sears!
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Post# 1006140 , Reply# 16   9/5/2018 at 12:08 (2,082 days old) by Yogitunes (New Jersey)   |   | |
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Sears hasn't had a service team for some time.....I think its called A&E Service, like a subcontractor....
not that we got great service the first time from a regular sears team...sorry to say.... they always sent out this guy they called 'Santa Clause'.....huge guy that had to walk in your doorway sideways....if he got down on the floor, it was basically his knees and belly holding him up, leaving his hands free to do the work....or should I say, to do more damage than when he started.... then they would send out another crew to fix what he broke..... why we could never get these guys first....even if you requested them.... and seems like everytime you requested NOT to have SC come for service, that's EXACTLY who they would send... |
Post# 1006440 , Reply# 20   9/8/2018 at 01:16 (2,080 days old) by Spinmon (st. charles mo )   |   | |
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And I did LOVE Sears and Pontiacs! |
Post# 1006454 , Reply# 21   9/8/2018 at 07:12 (2,080 days old) by fan-of-fans (Florida)   |   | |
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Most side by sides and some lower end french doors are from Whirlpool. A few top freezers are Haier and LG. Most higher end french doors are LG I think. The ranges seem to be from Frigidaire but not sure. |