Sears Sells Craftsman Brand, Will Close 150 Stores
Source: The Wall Street Journal.
Sears Sells Craftsman Brand, Will Close 150 Stores
The cash-strapped retailer will sell its iconic Craftsman brand to Stanley for about $900 million
By Anne Steele
anne.steele@wsj.com
@AnneMarieSteele
http://twitter.com/AnneMarieSteele
Updated Jan. 5, 2017 9:48 a.m. ET
Sears Holdings Corp. said it would close another 150 stores and sell its Craftsman tool brand for $900 million, as the cash-strapped retailer continues to shrink and battle slumping sales.
Sears is flipping the Craftsman brand to Stanley Black & Decker Inc., and it will license back the ability to sell Craftsman-branded products royalty-free for 15 years after the deals closing. The acquisition gives Stanley the rights to develop, manufacture and sell Craftsman-branded products outside of Sears. ... Today just 10% of Craftsman-branded products are sold outside of Sears. Stanley Black & Decker said the deal will help boost Craftsman sales in untapped channels
....
A Sears spokesman confirmed the unlimited lifetime warranty on Craftsman hand tools made in the U.S.a hallmark of the brand for generationswill be kept in place.
On Wednesday, Sears announced sweeping closures of 150* of its namesake and Kmart storeswhich it called a difficult but necessary step as we take actions to strengthen the companys operations and fund its transformation.
* http://graphics.wsj.com/table/SEARS_0117
Read more: http://www.wsj.com/articles/sears-sells-craftsman-brand-to-stanley-black-decker-1483623215
There's a list of the stores that are closing at the end of the article.
I think some Craftsman tools are already being made in the same country where Hello Twitty has his branded clothes made. At least, the ones I saw at an ACE Hardware came from China.
Tough times ahead. Better get used to it.
The good times are over.
Orrex
(63,215 posts)NWCorona
(8,541 posts)El Mimbreno
(777 posts)Dump one $10 million executive and hire 200 workers at $50k to actually build products here in the US. What a concept! OK, I'm dreaming.
NWCorona
(8,541 posts)I knew this was gonna happen when they sold the flagship SODO store in Seattle to Starbucks.
Sherman A1
(38,958 posts)simply sad.
global1
(25,253 posts)for the people that work in those 150 stores?
KatyMan
(4,197 posts)napi21
(45,806 posts)are profitable and merely moving ops to another country to get cheap labor and make MORE $$ for their CEO's pocket. Those can be prodded into staying in the US. Sears/Kmart and Macys (all three were listed in the announcement) are losing a lot of $$ and they have no alternative but to close some of the most unprofitable stores to stop the bleeding and TRY to make the existing ones profitable again. Unless they make some BIG CHANGES in their operations they won't exist at all a few years from now.
BeyondGeography
(39,374 posts)in a lot of places. On top of a lot of other big empty spaces, i.e. book and electronic big boxes, old Wal-Marts that were traded in for supercenters down the road, etc.
NWCorona
(8,541 posts)exboyfil
(17,863 posts)My wife shops there instead of Wal-Mart because of less crowds. The loyalty program paid for 70% of our new refrigerator from Sears. I think she will be bummed.
Blanks
(4,835 posts)I might not have been clear. KMart and Sears have a joint loyalty program. We usually only buy appliances at Sears (we had a washer and dryer that lasted forever from them through three moves).
randr
(12,412 posts)A new model of purchasing has emerged and is taking down the one dependent on fossil fuels.
Ironic that Sears started off with a revolution of their own in marketing; the famous Sears Catalogue allowed people all over the country to shop from home.
Too bad they could not see the similarities as the on line shopping world opened up. They were actually in a position to capitalize having been the originators of the "home shopping revolution".
Hoyt
(54,770 posts)had many other uses.
http://digital.library.unt.edu/ark:/67531/metadc303557/small/
randr
(12,412 posts)So to speak.
TonyPDX
(962 posts)Blanks
(4,835 posts)If you go anywhere in the country you'll notice that housing styles are practically identical in areas where houses were built during a certain time frame, north to south, urban and rural. It's because whole house kits were ordered from Sears.
I was intrigued when I first started noticing this, in the days before we were connected even by television, communities had a kind of connection, Sears catalog ordered houses.
https://en.m.wikipedia.org/wiki/Sears_Catalog_Home
randr
(12,412 posts)They were very well built, up to today's structural standards at least.
Sen. Walter Sobchak
(8,692 posts)It was still there till it burned down about ten years ago. My mother found it very disorienting as a child to see the same house everywhere.
Crash2Parties
(6,017 posts)Even the wood used for framing was beautiful compared to what is sold today.
mahatmakanejeeves
(57,489 posts)So how does stuff get from the Amazon warehouse to your house?
Hint: probably the same way the Craftsman tools I was buying 40 years ago got from the Sears warehouse to the local Sears store, where I would stop to pick them up on the way home from work, often on foot.
randr
(12,412 posts)on asphalt covered acreages to pick up an item or two and a fuel efficient truck making delivery rounds. Add in the costs and pollution of keeping millions of showrooms piled with goods warm for shoppers to walk around.
yellowcanine
(35,699 posts)It would be ironic indeed if Amazon were to buy some of the Sears retail stores.
LeftyMom
(49,212 posts)BumRushDaShow
(129,088 posts)Yes you may do this to me -->
christx30
(6,241 posts)delivery drone that can deliver a refrigerator. That hulking beast should be deployed in warzones.
BumRushDaShow
(129,088 posts)and you might have room for the other appliances in the kitchen too including stove and microwave!
randr
(12,412 posts)I will invest and we both will be rich.
Skittles
(153,169 posts)randr
(12,412 posts)Manufactured goods housed in low temp warehouses instead of spread all over the country to heated showrooms?
Millions of acres of heated showrooms and the infrastructure of paved parking lots?
Thousands of car trips to and from instead of a more efficient delivery system?
Skittles
(153,169 posts)but trucks still deliver Amazon packages
randr
(12,412 posts)The only thing that would be more efficient would be personal intelligent printers that could manufacture everything we need from our own waste.
Or the drone delivery systems coming to a neighborhood nearby very soon.
Sen. Walter Sobchak
(8,692 posts)I think a lot of kerosene and diesel is burned getting people's Amazon purchases to their door.
Girard442
(6,075 posts)... I left swearing I'd never go back. I'm not one of those people with a bug up his butt about mediocre service, but when it's bad bad BAD, even people like me get pissed.
SoCalDem
(103,856 posts)even at Xmas time(:
RussBLib
(9,019 posts)He wants to take credit when jobs are created. He should get the blame when jobs are cut.
coco22
(1,258 posts)yellowcanine
(35,699 posts)running Sears stores like street bazaars where departments within individual stores were competing with each other.
TexasBushwhacker
(20,201 posts)While he's closing all these stores, he's loading the company up with more debt.
turbinetree
(24,703 posts)Isn't he going to save these and thousands of other there jobs?
This hedge fund jerk CEO is going to walk away with millions----------------amazing
SoCalNative
(4,613 posts)since they canned him.
jmowreader
(50,559 posts)...because as far as I know Trump is still short an OMB guy.
turbinetree
(24,703 posts)Now Craftsman will rent the space in the sears stores, just like Lands End does now and then eventually they will move out.
Hedge Funds----------------suck
El Mimbreno
(777 posts)Yeah, power tools and some wrench sets are made in that big industrial city, Fu King, China.
Mosby
(16,319 posts)same with the ratcheting wrenches.
Stanley will take care of Craftsman, they also own Proto.
dixiegrrrrl
(60,010 posts)Lots of people are selling what they call "vintage" items, meaning before 1990, on E-Bay and Etsy and other similar sites.
This is where to get the original Pyrex and other kitchen items that are built well and long lasting.
also sheets, towels, etc of real thick cotton, to avoid today's tissue thin dry goods.
Tools are still easy to find.
El Mimbreno
(777 posts)As long as you can still get parts. I have "vintage" machines in my woodshop and US made Revere Ware in our kitchen. And a Japanese-made Makita circular saw that I've beat up for almost 30 years. Just put a couple of parts on it and it's just like new.
Zoonart
(11,869 posts)is all on a banana peel; floating warehouses, don't cha know. What happens to business that has all been moved online when the grid goes down?
ramapo
(4,588 posts)We shop almost exclusively online with the exception of groceries.
I love books and our trips to Barnes & Noble are warmly remembered. But my Kindle is a more than satisfactory replacement.
That's progress. Never mind the disappeared manufacturing jobs. Retail jobs will become fewer and fewer.
woodsprite
(11,916 posts)"cashier-less" store model with smart carts. You take things off the shelves, it adds it to your cart. You put things back, it deducts it from your total, you walk out the door, it charges your credit card.
I'm like what about the jobs it'll do away with - you guys are conservatives and should be concerned about that. Nope! What both BIL and SIL said are "Most cashiers are horrible people, who get snitty with patrons and make nothing more than mistakes. To that, I say 'Good riddence.'"
It truly is a miracle that I made it through Christmas at the in-laws without decking anyone.
Johnathan146
(141 posts)When I go to kroger I pickup a scan gun, scan each item as I bag it, then swipe my credit card and walk out. Its a really nice system.
Sen. Walter Sobchak
(8,692 posts)I am pretty sure the local vagrants are going to very effectively "disrupt" that business model.
crazycatlady
(4,492 posts)I just had to return a xmas present that I bought on Amazon and I actually had to PAY to return the item (no Amazon lockers in my county to drop items in). If I bought it online from a Big Box website, I would have been able to return it at a store. (It had to pay to print the shipping label at the library and then for postage to mail the item back. Luckily I saved the mailer it shipped in and was able to reuse it instead of buying a new one). The printerless options were at least $6 to return a $20 item. (I paid $3.50 for printing and shipping-- I don't have a printer).
I'm an Amazon Prime customer and buy a lot off of Amazon but now their return policy makes me think twice before buying an item that I'm not 100% sure on.
I also tend to buy my clothes in person. The quality of fabrics used to make clothes has gone downhill and I want to feel something (and maybe try it on) before buying it. Only exception is if I'm replacing a similar item (same brand, etc) and I know the quality/fit/feel of it. Shoes are the same way (I know Zappos has free shipping both ways, but they're out of my budget). I have hard to fit feet and need to try shoes on before buying them.
woodsprite
(11,916 posts)and covered the cost of the return. I received the replacement product the day after I shipped it back (pair of work boots). It was definitely a packing error - wrong size. I was amazed how easy it was.
crazycatlady
(4,492 posts)Initech
(100,080 posts)TonyPDX
(962 posts)but I believed this would happen about thirty years ago.
liberal N proud
(60,335 posts)Your fired!
Elmergantry
(884 posts)Got to be sure it fits. One brands xl not the same as another.
Paladin
(28,264 posts)Don't hold your breath, waiting for that to happen.....
INdemo
(6,994 posts)whenthey bought Kmart was their downfall....I actually worked for contractors that organized and set up a couple of those stores (Sears Essentials)
and I mentioned to a Sears Rep that "this Sears Essentials thing will never work"..I lost that job because of that comment and a short time later I saw the two stores close that were the Sears Essentials brand.
Sen. Walter Sobchak
(8,692 posts)They just about hung up on me and I listed off the failed discount stores in California in my lifetime. The really dumb idea was taking on the former Wal-Mart locations... if Wal-Mart closed them they were either terrible locations or there is a brand new Super Center nearby. The one I would have worked on was in a relatively affluent area right next to a Costco.
sharp_stick
(14,400 posts)It used to be such a good department store and the Craftsman brand was top notch.
LeftInTX
(25,370 posts)My hubby and dad bought Craftsman. We've got a Craftsmsn electric mower, which I love. Has more power than our previous Black and Deckers which couldn't handle our heavy duty mulching.
dembotoz
(16,808 posts)my very old one died and i was researching a new one. a dear friend ALWAYS bought her appliances at sears for more for as giggle i gave them a look.
hit the sales chat thing and got someone....told him i wanted cheap but good and i was not opposed to clearance.....
he found a wonderful machine at a wonderful price and i snatched it up....
being worried i might have been taken....too good to be true? i looked further into the machine i bought...and damn i really did get a wonderful wonderful deal....
now i understand why sue bought all the appliances there
bucolic_frolic
(43,178 posts)Brands are just merging all the time.
YKK makes 90% of all zippers.
Time was you had your choice of underwear: Fruit of the Loom, Hanes,
Jockey. For women: Bali, Playtex, Maidenform. All the same company if
I'm not mistaken.
Chainsaws: Poulan, McCulloch, Jonsered. Now all owned by the former
Swedish conglomerate Husqvarna that was sold off, bought out, sold again,
and went independent if I'm remembering articles correctly.
I might also explain extended warranties. My Kenmore washer controller failed
after 5 years of light use. Didn't buy an extended warranty. No matter, replaced
the controller myself. The new part was redesigned with stronger contact points,
perhaps even plated, a better chassis. So I'm thinking in order to keep the price
down they put inferior parts in the new items, then sell or punish you for an extended
warranty or a new and better part. They got you either way. You're really stuck
if you have to pay a repairman. My controller was $93. Installed would have added
at least $100 to the repair. Almost cheaper to .... buy a new one and start the cycle
again.
crazycatlady
(4,492 posts)The brands you mentioned are the mainstream brands sold in any given department store. Stores also have their own brands and then there's the specialty stores (Victoria's Secret, etc).
I know Hanes makes several brands, but as far as I know, they don't make VS items.
bucolic_frolic
(43,178 posts)for checking out conglomerates, some of which as you point out,
manufacture for other companies though they don't own the brands
China will manufacture anything and everything
Sen. Walter Sobchak
(8,692 posts)They shop their garment designs to about a dozen different manufactures, ask for samples and ask for prices.
Xolodno
(6,395 posts)That's like Disney selling off its most important characters for a quick cash infusion. They would have been better off negotiating with auto and home improvement chains to sell their products in their stores. Closing stores causes loss to access of your flagship products and selling them off gives people even less of a reason to visit them. I'm not a CEO, but this simple analyst can see just how stupid of a move this is.
The drop in sales at your brick and mortar stores is one part due to online shopping (which they didn't take advantage of) and the other dark and gloomy reason no one likes to mention. A shrinking middle class and less disposable income.
Malls have replaced some of their big box stores with Wal-Mart's and Targets, which is indicative of an area that has seen a shrinkage of the middle class. However, in the same exact mall, you still have the high end big box stores, that sell expensive make up, designer clothing, etc., indicating the upper class is doing quite well.
Of course, it doesn't help that they created a cut throat culture inside Sears that turns off customers and they didn't clean up the K-Mart brand and replace the Sears stores with them which were obviously going into the toilet due to economics.
I'm guessing they got greedy, Sears stores probably have a higher profit margin than K-mart so they kept pushing those stores without the realization, the local economy can no longer support them.
Nay
(12,051 posts)that $900 million. Think Chainsaw Al and Chainsaw Mitt. This is what Romney did for a living.
Berlin Vet
(95 posts)On then list is the K-Mart in Garden City Michigan. This was the very first K-Mart to open back in (I think) 1962. My family lived in Garden City for a few years and K-Mart was the place to go. I was back there in 2015 and went to visit the store and I felt like a ghost. I was remembering how the store looked like when I was young and I could see it again. The store had one little area that had some pictures of the newspaper story about the grand opening of the store. Management had no interest in promoting the fact that this was the very first K-Mart to open. Sad. Used to love their Submarine sandwiches, and to my surprise that store still sold them. I bought one and man was it terrible. I guess I just remember them tasting better.
ucrdem
(15,512 posts)but sometimes you can. I had a déjà vu moment in the games section of a local Target when I realized that the toy department of the White Front it had formerly been was in the same place when we'd passed through eons ago to buy August birthday presents for a brother.
Same toys too!
BumRushDaShow
(129,088 posts)Still have my parents' Craftsman tools around and had various Kenmore appliances over the years. My parents even had Sears re-do their kitchen back in '72 (and they cursed it for years after...lol).
They closed the landmark store here in Philly in 1993 and imploded it in1994 (I actually still have my own tape of that implosion too)-
http://www.phillyhistory.org/blog/index.php/2014/08/philadelphias-sears-tower/
True Fluffians used the iconic building to determine when they had reached "The Great Northeast" (as in NE Philly) when heading that way "up the boulevard" (Roosevelt Blvd which is also Rt. 1). I believe they eventually built a Home Depot on the land (haven't been over that way in years and years). This was our "Sears Tower" (although I have been in Chicago's Sears Tower now renamed to Willis).
virgogal
(10,178 posts)The replacements are usually dreadful.
BumRushDaShow
(129,088 posts)although over the centuries, they had considered leveling that too. They did pretty much get rid of the old 19th century buildings that had been built around it to clear the way for "Independence Mall" (for the bicentennial).
Before (when Lincoln was President-elect and was in this shot somewhere in 1861) -
and in the 1950s -
and now -
Ace Rothstein
(3,163 posts)When that happens it will truly be the end of Sears.
Sen. Walter Sobchak
(8,692 posts)And Kenmore itself doesn't actually make anything, Haier might have been interested but they got the whole GE appliance business which is a stronger US brand in the first place.
jmowreader
(50,559 posts)It has ALWAYS been relabeled major-brand appliances. I don't know what it is now, but when I was a kid it was all Whirlpool - and Whirlpool was always a very good brand.
The Wizard
(12,545 posts)Internet sales are the present and the foreseeable future.
Berlin Vet
(95 posts)I agree with you to a point. Buying books from Amazon ushered in the demise of Borders and will probably put Barnes and Noble into the grave as well. But buying a washing machine, furniture and other heavy, bulky items online will kill you on shipping.
We have lost our manufacturing base and the jobs associated with it and now retail is going under with the closing of Sears, K-mart, and Macy's (and probably more to come). What jobs are being created to replace them? I'm not very optimistic for the future.
Sen. Walter Sobchak
(8,692 posts)Sears is making a fortune leasing space to Forever 21, Segerstrom would probably pay in the hundreds of millions for them to go away.
pstokely
(10,528 posts)or do they have some kind of long term lease?
Sen. Walter Sobchak
(8,692 posts)At the Sears owned property at South Coast Plaza, XXI Forever will lease a small portion of the upper level and provide its own escalators and elevator into its lower level space. There will be an XXI Forever entrance facing Bristol Street, and a dedicated entry into the center on the lower level. The store is expected to open in the spring of 2011.
Sears owns (or owned) a lot of their mall locations in the US and Canada.
pstokely
(10,528 posts)they seem to be scrapping Sears for parts
Throd 2.0
(62 posts)Blue_Tires
(55,445 posts)But deep down I guess we all knew this was coming
Sunlei
(22,651 posts)of Amazon.
lunasun
(21,646 posts)The table came through and although we have many in the area no cuts seen. Craftsman is a brand of 20th century America history . Trusted tools. Popular Mechanics all that . I have some old ones and never had to seek replacement even if I could.msome came from work and others from garage sales. They were older but always a good brand to look for
Yes some items under the craftsman names have been made in china for quite awhile.
mahatmakanejeeves
(57,489 posts)lunasun
(21,646 posts)hunter
(38,317 posts)... hand-me-downs and tools I've found in thrift stores or garage sales.
Unfortunately Craftsman started drifting toward the Harbor Freight model of "Lifetime Guarantee," which is "sure a certain number of tools will break, but they're so cheap we'll happily replace them. But we know you won't."
A craftsman can only tolerate a certain number of bruised knuckles when a socket or wrench breaks, or power tools that fail when you need them most. (My most recent experience was an inverter that spontaneously went BANG! and released the magic blue smoke. It wasn't doing anything strenuous, just charging my brother-in-law's phone.)
It's not all crap, however. Many Craftsman tools are still good, and so is some of the stuff you find at Harbor Freight. (There's also a large hacker society that turns certain inexpensive Chinese tools into much better tools by reworking or upgrading whatever parts makes them crap.)
As Mosby said above, Stanley will probably take better care of the brand than Sears was.
shenmue
(38,506 posts)madaboutharry
(40,212 posts)about Sears, starting at the beginning when it was Sears Roebuck up to now and the circling of the drain.
It would be facinanting story.
LeftInTX
(25,370 posts)The high power radio station, WLS, stands for World's Largest Store
geek tragedy
(68,868 posts)Question: what is the number of struggling retail department stores that have managed to survive in the age of Amazon?
Adrahil
(13,340 posts)Seems just about finished with ruining it.
jgmiller
(395 posts)The problems at Sears predate him more than 20 years. Sears has managed to miss every significant retail development since the mid-90's and has reacted to each only after losing more revenue. The current CEO has only been on the job for 3 years and frankly it's amazing he's kept it out of bankruptcy this long so in that regard he's actually doing a good job. It's very sad to think of Sear's disappearing from the world for nostalgic reasons but honestly it just needs to go away and so does KMart.
Walmart killed KMart and the only reason it's still kicking is that a previous regime at Sears thought somehow buying KMart would fix them. If Sears went away nobody would notice, if KMart went away Walmart would gain revenue and a longer reprieve to fix what is wrong with them.
Raine
(30,540 posts)place that gave him a chance and hired him. Always been a loyal Sears shopper after the opportunity they gave my father when no other business would.
X_Digger
(18,585 posts)I have a set of wrenches my father bought in the late 60's. If I had kids, I'd be handing them down. Sadly today's wrenches are crap.
MFM008
(19,816 posts)Both my parents worked at K mart- my mom 20 years.
We made so many trips to Sears when I was growing up.
TomJulie
(98 posts)I have a lot of Craftsman tools. A few years ago I bought a bigh collection at a garage sale. Some have to be over 30 years old. Still work like a Craftsman should.
My very first weedeater was a Craftsman. That thing ran perfect for 6 or 7 years.
My 1st lawn mower was a Craftsman. A 18HP 42inch cut. That was not a dependable mower. At the start of almost every spring, Sears had send their guy out to do something to get it running and ready for the mowing season. I sold it after a few years and bought a Deere. I haven't had any maintenance done other that what I do - blades, oil & filter change, tune-up, grease the fittings etc - since I've owned it.