Thread Number: 76721  /  Tag: Modern Automatic Washers
The Sad End of Kenmore
[Down to Last]

automaticwasher.org's exclusive eBay Watch:
scroll >>> for more items --- [As an eBay Partner, eBay may compensate automaticwasher.org if you make a purchase using any link to eBay on this page]
Post# 1005809   9/1/2018 at 23:07 (2,035 days old) by Ultramatic (New York City)        

ultramatic's profile picture

 

 

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.

 

01 kenmore appliances FILE

 

 

 

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




Post# 1005836 , Reply# 1   9/2/2018 at 08:44 (2,035 days old) by CorvairGeek (Gem State)        
So true

"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."

I almost bought a Kenmore refrigerator in 1998 when I realized it was a cheap, WC made unit rather than a Whirlpool (that has been in my kitchen for 20 years now). Never looked at Sears much after that, probably like so many people for various reasons.


Post# 1005903 , Reply# 2   9/3/2018 at 07:22 (2,034 days old) by Yogitunes (New Jersey)        

yogitunes's profile picture
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 (2,033 days old) by Pierreandreply4 (St-Bruno de montarville (province of quebec) canada)        

pierreandreply4's profile picture
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

  View Full Size
Post# 1005950 , Reply# 4   9/3/2018 at 14:48 (2,033 days old) by gansky1 (Omaha, The Home of the TV Dinner!)        
Gurl, bye.

gansky1's profile picture
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 (2,033 days old) by Frigilux (The Minnesota Prairie)        

frigilux's profile picture
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# 1005967 , Reply# 6   9/3/2018 at 18:56 (2,033 days old) by Lorainfurniture (Cleveland )        
Even as late as the late 80’s

I remember as a kid going to sears with my parents. It was always a great time.

Even now as a serviceman I still get some older customers that brag about only buying their products from sears. My understanding was that back in the day sears had the best appliances AND the best service, both in store and in- home service.


Post# 1005973 , Reply# 7   9/3/2018 at 19:29 (2,033 days old) by fan-of-fans (Florida)        

As a kid we got all of our appliances from Sears, GE and Kenmore. Only a few I can recall from Montgomery Wards.

As to the Kenmore brand, I was hoping maybe Lowes might get it like they did Craftsman. But as mentioned, they don't really seem to have anything too unique under the brand that no one else does. Maybe some of the Kenmore Elite stuff is exclusive, but I know a lot of the Whirlpool sourced refrigerators, etc is just rebadged, with no differences. It almost didn't= make any difference to selling Whirlpool there because so much of it was the same thing as Kenmore.

It would be nice if Cleva could get the Kenmore name somehow. They ended up getting Panasonics designs and engineers when they pulled out of North America so Kenmore vacuums could continue to be made. Vacuums are really the only private branded Kenmore item that no one else has. It would be nice if Cleva could perhaps improve the quality a bit and add the Kenmores alongside their own shop vac line. They also make the Craftsman shop vacs.


Post# 1005975 , Reply# 8   9/3/2018 at 19:35 (2,033 days old) by Pierreandreply4 (St-Bruno de montarville (province of quebec) canada)        

pierreandreply4's profile picture
I grew up knowing sears stores even knoing the Kenmore brand seeing the 76 washer dryer line as well as the line for 1988 my grandmother Kenmore washer

Post# 1005984 , Reply# 9   9/3/2018 at 20:13 (2,033 days old) by IowaBear (Cedar Rapids, IA)        

iowabear's profile picture

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 (2,033 days old) by Ultramatic (New York City)        

ultramatic's profile picture

 

 

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# 1006014 , Reply# 11   9/4/2018 at 06:14 (2,033 days old) by Tomturbomatic (Beltsville, MD)        

What is not mentioned in the article is how you could get a Kenmore machine with more features for less money at Sears than an almost identically featured Whirlpool machine at an independent dealer or department store. Most striking was the difference in price between the WP combo at over $500 while the Kenmore machine was something over $300 and often on sale. On top of that was Sears famous credit and their well-staffed credit department. It seemed that as long as you had an address, you could get Sears credit. If you ever ordered anything through the catalogue, you received the sale catalogs in the mail.

 

What a time that was, mostly all before the oil embargo when everything changed because any form of transportation and production skyrocketed in price. That might have started the end of retail as we had known it. I remember how free delivery on any purchase was replaced with delivery on minimum purchases of $15. Then there were the cutbacks on sales people to help you find things and people to answer the phones when you called a department looking for something and less inventory in the stockrooms so that things that were usually in stock were sold "on order" and delivered after the shipment arrived.

 

The formerly great adventure of shopping became a pain in the ass.


Post# 1006018 , Reply# 12   9/4/2018 at 06:53 (2,033 days old) by Pierreandreply4 (St-Bruno de montarville (province of quebec) canada)        
a trip down memory lane

pierreandreply4's profile picture
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 (2,032 days old) by DADoES (TX, U.S. of A.)        

dadoes's profile picture
 
1957 - TurboMatic, the first washer-dryer combination, shakes up the laundry market
Bendix wasn't first with a combo?


Post# 1006052 , Reply# 14   9/4/2018 at 10:48 (2,032 days old) by combo52 (50 Year Repair Tech Beltsville,Md)        

combo52's profile picture
Good eye Glenn, there are many more mistakes in the 100 year KM history as well.

Bendix was the first in late 1952, WH, GE and Automatic washer company all had combos since 1955, and several others had them by 1957 as well.

Sears also had all black W&D pairs in 1985, not 1990.

John L.


Post# 1006100 , Reply# 15   9/5/2018 at 00:02 (2,032 days old) by eurekastar (Amarillo, Texas)        

eurekastar's profile picture
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!

Post# 1006140 , Reply# 16   9/5/2018 at 12:08 (2,031 days old) by Yogitunes (New Jersey)        

yogitunes's profile picture
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# 1006191 , Reply# 17   9/5/2018 at 21:47 (2,031 days old) by lakewebsterkid (Dayton, Ohio)        
Sad

Kenmore appliances have roots that run quite deep in my family. A majority of our appliances have always been Kenmore branded up until the past few years. It is an absolute shame to see what Sears has done to this once iconic brand. It pains me to know that the end is near.

Post# 1006339 , Reply# 18   9/7/2018 at 03:15 (2,030 days old) by man114 (Buffalo)        

A&E service is owned by Sears, it’s just a subsidiary. The delivery arm is now called Innovel and also services Costco via a contract, it’s one of Sears’ profitable divisions.

The Kenmore stuff seems mostly sourced from LG these days except the freezer chests, a few freezer models and the stacked washer dryer units. LG and GE snatched up all the floor space Whirlpool left behind. Guess it’s better to have a large presence even if Sears is on the downward slope, builds future brand loyalty,


Post# 1006439 , Reply# 19   9/8/2018 at 01:11 (2,029 days old) by Spinmon (st. charles mo )        

Sears,Pontiac,Plymouth,Oldsmobile,Mercury. Poor choices by management allowed their slow,painful deaths to occur.

Competition,new ways of selling contributed,but letting worthy,desirable products become undesirable begins at the top by people with either no/lost foresight or purposeful intent to destroy a line or company.


In many companies ONE man (woman) makes or destroy greatness.


I'm just another sad older boy lamenting the passing of good times and decent products/services at fair prices.


Post# 1006440 , Reply# 20   9/8/2018 at 01:16 (2,029 days old) by Spinmon (st. charles mo )        

And I did LOVE Sears and Pontiacs!

Post# 1006454 , Reply# 21   9/8/2018 at 07:12 (2,029 days old) by fan-of-fans (Florida)        
Kenmore

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.


Post# 1006542 , Reply# 22   9/8/2018 at 22:31 (2,028 days old) by GELaundry4ever (Nacogdoches, TX, USA)        
kenmore washers

Today's Kenmores and their upscale elite lineup are lg's. Shame!


Forum Index:       Other Forums:                      



Comes to the Rescue!

The Discuss-o-Mat has stopped, buzzer is sounding!!!
If you would like to reply to this thread please log-in...

Discuss-O-MAT Log-In



New Members
Click Here To Sign Up.



                     


automaticwasher.org home
Discuss-o-Mat Forums
Vintage Brochures, Service and Owners Manuals
Fun Vintage Washer Ephemera
See It Wash!
Video Downloads
Audio Downloads
Picture of the Day
Patent of the Day
Photos of our Collections
The Old Aberdeen Farm
Vintage Service Manuals
Vintage washer/dryer/dishwasher to sell?
Technical/service questions?
Looking for Parts?
Website related questions?
Digital Millennium Copyright Act Policy
Our Privacy Policy