Sears sees its appliance business slump
The company used to be the clear choice for Americans looking for washing machines and refrigerators. Now it's losing market share to Home Depot, Lowe's and others.
For many Americans, the answer to that question is no longer Sears (SHLD). The company is losing its status as the best place to go for appliances after essentially inventing the business during World War I, The Wall Street Journal reports.
A slide in home appliance sales stuck out like a sore thumb in Sears' quarterly earnings report Thursday. Overall sales fell 6.3%, and the weak appliance category was key to that.
Sears still leads when it comes to appliance sales, with a 29% market share, The Journal reports. Lowe's (LOW) comes in second with 19% and Home Depot (HD) has 12%.
But Sears' dominance is fading. In 2002, Sears' market share was a powerful 40%, while Lowe's and Home Depot were at 10% and 4%, respectively.
Part of the reason Sears is losing market share is because Lowe's, Home Depot and even Best Buy (BBY) have made huge strides in the home appliance business.
But another problem is one of Sears' own making, and has everything to do with its relationship with Whirlpool. Sears took a stake in Whirlpool in 1921 and partnered with the company for decades on appliances that consumers trusted. Whirlpool made many of the appliances that Sears sold under its Kenmore brand, The Journal reports.
But in 2009, Sears switched to LG Electronics and Samsung to make some Kenmore products, leaving Whirlpool a bit steamed.
Now, Whirlpool is the top-selling appliance brand in the U.S., The Journal reports, followed by General Electric (GE). Kenmore comes in third.
- Fujifilm shows instant film cameras are hardly dead
- Columbia, SC, to exile its homeless
- No one wants to run J.C. Penney
They have the worst management in the industry.
They need someone who knows retail to run the place.
I used to buy all of my appliances at Sears because they had the best deals - free delivery, removal of old appliance and installation, and if you had good credit you could get 0 interest and no payments for 18 - 24 months. It was nice when I remodeled my kitchen and replaced all my appliances. That inspired me to replace my washer and dryer.
Last time i checked they charged for delivery and had 0 interest with minimum payments for 6 months. I guess I will have to shop around the next time I need an appliance.
SEARS was once a grat place to shop ! what happened ? first they trash their best customers
and started selling junk ! their tools craftman used to be best --but now its crapsman !
and they are soo mean to older people ! like K-MART---Sears is history and no one will miss
them when there gone ! gyy
Copyright © 2014 Microsoft. All rights reserved.
[BRIEFING.COM] There hasn't been a shortage of headlines for market participants to digest today. Most of them have gone down pretty easy, too.
Geopolitical concerns have ebbed for the time being, earnings results continue to be mostly better than expected, and today's economic data revealed that inflation pressures remain in check while existing home sales rose for the third straight month and topped an annual pace of 5.00 mln for the first time since October 2013.
There was ... More
More Market News
CNBC host Jim Cramer says stocks should be crushed by global turmoil. Instead, they're doing fine.
MUST-SEE ON MSN
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'