Struggling Sears mulls selling its brands at other retailers

Two thousand and eight is a leap year. For Sears, which on February 28, 2008, announced a 47 percent decline in 2007 fourth-quarter net earnings on a 6.8 percent sales drop, a different kind of leaping could be on the horizon.

The Hoffman Estates, Illinois-based Sears announced that it’s considering selling some of its biggest brands—Craftsman, DieHard, Kenmore, and Lands’ End—through retailers beyond its nearly 3,800 U.S. and Canadian stores. (Read the entire press release from Sears.)

“One of our most important resources is the great brands we own, in particular DieHard, Craftsman, Kenmore, and Lands’ End,” said Sears Chairman Edward S. Lampert in a letter to shareholders. “All four of these brands have significant equity with customers and provide tremendous opportunity for value creation.” Lampert went on to explain that DieHard “leads in customer recognition among car battery brands by a wide margin, but it lags dramatically in market share . . . due to fewer points of distribution.” The move to sell Sears brands through other retailers “is an opportunity for us to rethink our brand distribution strategy to create value,” said Lampert.

The announcement is yet another sign of the reeling U.S. economy and points to tougher times for Sears, whose shares were down almost 5 percent in trading on February 29. The good news: The presence of Sears brands at other retailers could be a boon for appliance and outdoor-power-equipment shoppers who don’t live near a Sears store, since Kenmore and Craftsman products consistently get high scores in our Ratings of major appliances and outdoor gear.

Should Sears cross that threshold, it will be some time before its Craftsman, DieHard, Kenmore, and Lands’ End products appear in other places.

For now, you might have to drive the extra distance to a Sears or even to a Kmart store, where some Sears products are sold. If you’re lucky, any deal you get won’t be guzzled up by the rising price of gasoline.

Below we’ve highlighted a few notable performers sold by Sears. You’ll find the latest reports and Ratings for all appliances and outdoor power equipment on our main Appliances and Tools & Power Equipment pages. Note that Kenmore appliances and Craftsman mowers and lawn tractors have tended to be reliable, based on responses to the Annual Product Reliability Survey conducted by the Consumer Reports National Research Center.

Laundry appliances:
The Kenmore Elite HE5t Steam 4778[1], $1,600 (shown), and Elite HE5t 4708[1], $1,300, front-loading washers were among the top-rated machines in our latest report. The Kenmore Elite Oasis 6706[2], $800, and Elite Oasis 6703[2], $700, dryers notched excellent scores in our latest tests. Ratings of washing machines and dryers are available to subscribers.

Kitchen appliances:
Four Kenmore dishwashers were among the top six scorers in our latest tests of dishwashers: Kenmore1374[2], $650; Elite 1378[2], $1,000; Elite UltraWash HE 1315[2], $1,100; and Elite UltraWash HE 1312[2], $900.

Two Kenmore 30-inch electric smoothtop ranges—9641[2], $750, and 9611[2], $580—are among the best performers in our latest report.

The Kenmore Elite 5896[2] side-by-side refrigerator scored highly in our Ratings.

Ratings of dishwashers, electric ranges, and side-by-side refrigerators are available to subscribers.

Outdoor power equipment:
Sears also rides high in lawn tractors. The 46-inch Craftsman 28724, $1,600, and the 54-inch Craftsman 27690, $2,000, are among our top-rated tractors and also among the lowest-priced tractors we've tested. Learn how to choose a lawn tractor and see our Ratings of tractors for more information.—Daniel DiClerico

Comments

[Concerned Consumer]

Maybe Sears (catalog department) would not have this problem if they cared anything at all about customer service. I had major problems with them - they made an error on an account but they were unwillinging to admit the error at first. I even had a customer service agent refuse to answer my question and then told me she was going to hang up. There is much more - but I digress.

[Jim Duke]

Always liked Sears products -- efficient, reliable. The problem is the in-store service has dramatically declined. By in large the clerks are indifferent and not terribly knowledgable. Not a few times, too, products displayed are not currently in stock. Certainly a sign of a glitch in management.

[Ron Taggirt]

An more effective online retailing operation/strategy could also have obviated the "I don't live close enough to a Sears store" problem.

These are all good brands, but Kenmore is threatened by Samsung and LG and the Die Hard (which interestingly enough, was conceived by Ross Glatzer, who went on to lead Prodigy) is being pressed by Costco's Kirkland batteries (these topped CR's ratings last year) at the low end and the new line of Optima red and yellow batteries at the top end.

[Mark Simmons]

Sears seems hell-bent on antagonizing and alienating appliance customers that have service-related issues.

On September 1, 2006 we purchased a Kenmore bottom freezer refrigerator (model 79577302600). The icemaker was replaced within six months (and still does not work properly), and the main circuit board failed at 13 months (October 6, 2007 to be exact - just 36 days out of warranty), causing the regrigerator lights to burn continuiously although the doors were closed. Had my wife not happened into the kitchen in the middle of the night, there would have been a fire - the electronics housing at the top of the regrigerator unit had melted and fallen off, and the plastic light sockets were black from the heat and had started smoking.

But the real fun didn't begin until we tried to get this major failure repaired. It would take three or four paragraphs to describe the incompetence of the service technician (he had to return three times because he kept ordering incorrect parts for which we were being billed) and the poorly trained customer service representatives who failed to tell us about an available extended warranty, and gave us incorrect or incomplete information as we were trying (very unsuccessfully) to get the various service-related problems and billing issues resolved.

Curious as to whether my "service repair from hell" was an anomoly, I googled "sears repair problems", and much to my chagrine, found there are thousands of customers that have had similar negative experiences with Sears service centers. I have never before experienced such a level of frustration with a major company, and while Sears claims to value customer feedback, there is no effective mechanism for doing so candidly.

I have been so soured by this experience that I will never again purchase a major appliance from Sears, and would warn off everyone I know from ever doing so.

[Joe Harris]

Your sales are down. I wonder why?

I used to be a dedicated Sears customer. I purchased just about every thing from Sears (appliances, furniture, automotive, clothing, etc.) just about every major purchase used to be from Sears. Your quality and customer service was outstanding. My family laughed at me when I went shopping at Christmas because when I went to the mall, it meant going to Sears.

Then the problems started, furniture fell apart in less then a year. My water softener had to be repaired every six months the washer dryer had to have major repairs after 2 years. It seamed that every thing fell apart just after the warranty expired. So I started buying the extended warranty and it seamed that I was contacted by Sears just about every month to extend my warranty coverage. When I added up this warranty coverage it was
$ 4200.00 a year.

I started shopping at every place but Sears and just used the standard warranty coverage.
Every thing lasted years and years

Recently I purchased a Freespirit Elliptical trainer and after 2years it started to smoke. The mother board was bad. You don't sell parts. I would have to purchase a new CONSOLE SET for $ 600.00.

No wonder your sales are down! You don't have any quality to entice me to keep coming back.

I am now on fixed income so to spend more than 1/2 the price to fix it I purchased another trainer from another supplier.

[Catherine]

I would not recommend Sears products to anyone. We renovated our house less than a year ago and purchased new Sears appliances (that were highly rated by Consumer Reports) to replace our aging Sears appliances that dated from the 1970s. The first front-loading washing machine they sent us would not work so we sent it back and ordered another one. The second was visibly damaged so we sent it back - the third one seems to work well.

The pump and motor assembly and the front door seal failed on the dishwaser three months after we started using it (mostly 1 load per day). It was fixed under warrantee a couple of months ago, but is now leaking water from the front again.

So far the fridge, freezer, electric range/oven, and dryer are functioning well, but based on the comments I have read, I am not optimistic they will last longer than 5 years.

I am wondering why Consumer Report's ratings appear not to reflect consumer experience? This is the second time I have encountered this disjunct between these ratings and reality. Consumer Reports, for the most part, does not rate VW well, however, every VW diesel owner I have spoken with (~15) loves their car and has had no issues with reliability.

[Hane]

I have shopped at Sears since 1958. What I see is a continuous decline in the attitude of the sales associate and the support personnel. The prevailing attitude now seems to be one that projects that you are disturbing their day by asking a question, for help, or to ring out.

I would not blame Sears as much as I would blame the consumer. If the consumer loyalty is only price driven, why should a company like Sears invest in better service when Target and WalMart treat you like 'dirt' and yet the consumer returns and returns to them.

If you want better products and service reward only the green corporations that treat their employees like we would like to be treated as customers. None of the three companies I refer to would do that.

[Chris]

I agree with the comments other subscribers have made about customer service at Sears. It is very bad indeed.
The clerks at my local Sears store (Livingston NJ) know very little about the products they are supposed to be selling.
They are often sullen and unhelpful.
They make you feel that you are imposing on them by asking them to serve you.

[Craig]

Of course your getting bad customer service. When you let cut the pay or hours of senior employees and replace them kids the customer and the store(in the long run)lose. Who really wants to work retail? I work retail part time after dealing with idiots that don't know what they want, throw stuff on the floor, steal, scam and treat you like dirt don't get upset if I might be in a bad mood. Of course the $7.50 per hour helps

[Gerald McInvale]

As others have said, Sears stores are very poor in that they often have clerks who know nothing about the products, their inventory system is a joke, and service and installation are extremely poor. Product quality and reliability has declined steadily over the past decade. Quite frankly, it is a mystery to us how you can consistently rate their products so highly. Those ratings certainly do not reflect our experience, and are beginning to call your credibility into question.

[Mike]

Every single time I go to Sears I have a problem. Over the past seven years I have purchased large appliances from them ranging from washer & dryer, lawn mower and induction cooktop. All of these appliances have had problems with multiple service requirements. So I have given up on large purchases at Sears.

So I went to Sears' watch repair with four or five watches for batteries and a new crystal on one of the watches. This is small stuff. Sears screwed up the order and over charged me. They made up a story about a fee to handle the order. I gave up and walked out of the store after all it was only five bucks.

When I got home I decided to send an e-mail to Sears because it was my five bucks that they took. Sears responded that the store will contact me. You know it! The store never contacted me.

We have owned our washer and dryer for seven years and we have had two service calls on the washer and three on the dryer. Each time they sell a contract that includes a one year warranty. I have spent $650 on maintenance. My parents purchased their washer and dryer from Sears and in 20 years had one service call.

Sears has gone cheap on their in-store training and they have gone cheap on their hardware.

If they go out of business it's because they forgot about people that made their store great.

[C.B.]

Well, i work for sears. All these comments disturb me. I for one try to treat my customers as i would want to be treated so i dont blame any of you for not returning to sears that have had poor experiances with sales associates. But some . . . . no most of the run around that customers get from service or with regaurds to problems comes from higher up than your run of the mill employee. They keep adding on layers of hoops to jump through and people to talk to to get things taken care of and a majority of them unfortunatly are not trained before they are added to the "team". I am so sorry i know only a few of the frustrations that my customers have gone through and we are not all "put out" or "bothered" by customers that need attention for a purchase or a problem. Unfortunatly the company has taken a lot of the ability to fix things away from the everyday associates. My advice is to write corporate, the associates know of the problems we just dont have the power to make the changes. Again i am sorry, hopefully this helped someone somewhere.

[Lisa]

Sears no more for me!! I purchased appliances in November and I'm still waiting for my full rebate. It's 3.5 months! I applied online. I mailed them my info. I've faxed it. I've been told by 3 different people that my rebate is being processed. Amazingly there are no records of my earlier conversations and no check. Not being able to process a simple rebate seems a little shifty.

BTW, I've been on hold with Customer Service for going on 15 minutes now waiting for a supervisor. Don't buy from Sears.

[Maurice]

I am amazed at how terrible Sears customer service is. I made the mistake of buying a tractor and some power tools from Sears, having no idea how poor their customer service would be. The $2000 tractor never worked, and they told me that they could have someone come look at it in two weeks on a Monday any time from 8 to 5. I explained that I *work* from 8 to 5 and asked for a narrower window. They refused, of course, and I tried various levels of management, only to be hung up on three times, transferred to an India call center twice and to the Philippines once. At best, they could come *three* weeks later on Monday between 8 and 5. Once insolent manager told me to either quit my job or take a "personal day" if I wanted service from Sears. I find their service indefensible and will NEVER shop at Sears again.

[tammie]

My experience with my 8 month old Kenmore Kenmore HE2 plus has been terrible. It has leaked from the beginning, and walked all over the laundry room, but three weeks ago, the "boot" failed and tore clothing inside the washer. Water poured all over the floor. For two weeks I dealt with Sears repair numbers, but then after much frustration I went back into the store to speak to the manager regarding my problems. I have never felt like someone cared so little. He has done nothing to help me and has given me phone numbers to call regarding my problems. When I call these "customer relations" numbers, they transfer me all over the place, passing me through the same departments over and over again until I get tired of telling my story over and over and I just give up. I think in the reviews of appliances, you should add information regarding how efficiently and effectively the companies back up their products and warranties. My washer is still under warranty and I am still looking at weeks more without it. I have an $800.00 piece of junk sitting in my laundry room and I have no expectation that it will hold up past the warranty. The "considerate" manager did, however, try to sell us an extended warranty, though. We filled our new home with Sear's appliances. What a mistake.

[Dave]

In Nov 2004, we remodeled our kitchen and purchased a Kenmore fridge, stove and dishwasher. The icemaker died within 18 months, the main board on the stove fried within 3 months and now, the coup de grace! Our stainless steel tub diswasher has two rust holes in the base, leaking and ruining our laminate kitchen floor and the ceiling/wall of the bathroom below it.
That's right; RUST HOLES in a stainless steel tub! Sears has done everything to "pass the buck", that is, when they bother to return my calls. The tub has a lifetime warranty and the Sears service tech has ordered a new one, but it has been backordered since April and now will not ship until 5/22, at the earliest.
Either they have a manufacturing problem, or they are selling non stainless steel at stainless steel prices. I have filed a complaint with the Better Business Bureau over this.

[P. Bias]

I am a fourth generation, Sears appliance purchaser, and the long standing
tradition has ENDED. I wouldn't have another Sears product in my house,
if, you gave it to me Free!
I took CONSUMER REPORTS lastest issue on Dishwasher and Stove testing to
my local Sears store in Pleasanton, CA. I purchased the #1 recommended
by CR, Dishwasher and Stove - both Kenmore. By the way, Kenmore no longer manufacturers its own products - my stove was actually made by
Electrolux. Sears does not tell you that the delivery/installer people
are NOT SEARS EMPLOYEES - with all the consumer protection of drug testing, back- ground checks done and ETC. that employees are screened for.
The people who delivered/installed my stove were independant very small
(rent a truck and get your brother to help and you own a comp. that Sears
will allow to handle their customers) so called -company. They wear NO
uniforms, they have NO ID'S, they have NO COMPANY BUSINESS CARDS, the
TRUCKS ARE UNMARKED, Junkie looking trucks.
I believed the company delivering/installing my stove were Sears employees - No One ever told me different!!!! All scheduling of their services is thru
SEARS INSTALLATION. It's a nightmare - you must avoid and I ENCOURAGE
CUSTOMER REPORTS TO PUT THIS IN ANY ARTICLE TESTING OR RECOMMENDING A
SEARS APPLIANCE. This is DANGEROUS for a consumer - to have these
UNIDENTIFIED PEOPLE, COME INTO YOUR HOMES.
It's a very long and very sad story and I'll not get into it here but
I am a Senior, living alone, and my stove was improperly installed by
these people and resulted in a serious injury to me and SEARS has done
NOTHING TO HELP ME - REFUSED TO PAY MY HIGH MEDICAL BILLS AND HAS
made my life absoultely MISERABLE with harassing phone calls, letters,
faxes and etc. Sears must be AVOIDED - please folks stay away.
There are good businesses that sell appliances - go there.
Don't bother to contact Sears so called 'corporate office' those are
call centers and one lady told me all they do is take a report and file
it - no one at Sears corporate level wants to see the reports, they were
told. ( I finally reached an honest person, who told me the truth.)
I'm writing this blog to save anyone else, especially Seniors, living on
Soc. Sec. to AVOID SEARS. You will be harassed, cheated, lied to,and on
and on - at the same time they have and keep your hard earned money.
Please CU put the information about the delivery/installation personnel
in your magazines and on your website - this is a very DANGEROUS PRACTICE according to the local Police Dept. Furthermore, it's illegal -
but that doesn't stop Sears.
I will take Sears to Small Claims Court when I recover from my injury
but what a hassle for me - when all I wanted to do was buy a #1 rated
stove by CU. Thank you for reading my blog and please heed my advice -
STAY AWAY, FAR AWAY, FROM SEARS AND LIVE A MUCH HAPPIER LIFE.

[Rob Gracie]

Sears Product and Reputation is going down hill fast. I used to like buying Sears products BUT I WILL NEVER BUY ANOTHER SEARS PRODUCT AGAIN. The Repair Warranty Service and Customer Relations is terrible. Change of the Board of Directors is needed to revitalize this once great American Company. I'm currently going through a nightmare trying to get my expensive Carrier Heat Pump serviced that is under warranty but Sears is taking forever getting it repaired. So far it has been 11 days without Air Conditioning during August in North Carolina and it still has not been fixed. I received the parts in an acceptable time frame directly to my home after it was ordered by a service technician that Sears sub-contracts within the area. I called Sears and reported all parts received and they scheduled me for this past Friday for repair. The sub-contractor called and said they didn't service my area on Fridays and rescheduled for the following Monday. Sears automated calling service confirmed the appointment for Monday 11 August 08 between 8:00AM to 5:00PM. I had to call at 3:30PM on Monday to see when the service technician would arrive. Sears had the technician call me and I explained to him that I received the Heat Pump parts (Compressor, capacitors, and Kick Start Kit). He told me he was unaware that this service call had any parts and that it would take too long today to fix it since he was 40 miles away. He was going to call Sears and that he would contact me afterwards. He never did and I contacted Sears at 1-800-469-4663 and spoke to their scheduling department and they didn't know anything about todays appointment but I had an appointment 3 days from now. It seems to me one department isn't talking to the other department within Sears. I will see how the repair goes, still waiting for some Air Conditioning for my home. Hope they repair it before Winter comes. As you know Heat Pumps cool & heat the home. BTW this is a Carrier WeatherMaker Two-Speed Model 38YDB Heat Pump that was installed May 04 (4 years old).

[Jerry Tillman]

I purchased a Sears Water Softener in 1999 and maintained a Sears Protection Agreement each year. T experienced no problems until recently when it stopped functioning. I called Sears and they sent a contract plumber to service it. He said the resin tank is "shot" and it is not covered by the Sears Protection Agreement. He stated it would cost less to buy a new softener than to repair it. I was told the Protection Agreement covered all parts & labor each time I renewed The store dept manager said "we stopped covering resin tanks three years ago" & he was not authorized to help me. I was referred to numberious "800" numbers but nobody was helpful. I wrote the CEO of Sears and received a call from a secretary & was told no coverage. I did not even receive a answer from the corporate office by letter. My copy of the Protection Agreement does not exclude the resin tank from coverage. Sears is no longer interested in Customer Service and keeping loyal customers.

[Jason McKendrick]

Sears Customer "Service" is no Service at all! I have not had any success in working with Sears Representatives to assist with any requests I have on past purchases. My records will show that I was billed and penalized for past due payments on a NO PAYMENTS/NO INTEREST for 12 months promotion that turned out to be a promotion for Late Fee Collection efforts by Sears and Interest Increases on products purchased at the time of this "Great" NO PAYMENTS/NO INTEREST promotion.

I just spoke with 2 different reps. (Brian and FeBe) and was disconnected both times after they could not access my account by using my account number and then was supposed to be transferred to the "Warranty" Dpt. ???
Again, TERRIBLE Customer "Service"!!!

So now I type this letter sharing my experience and DO NOT expect to hear back from you with any kind of Customer "Service", but I will continue to NOT use my Sears Card and will NEVER recommend Sears to anyone.

I will also be posting my experience on every customer service survey that I can find online, not because I have the time, but because Sears has been the worst company I have purchased anything from.

Very Unsatisfied Customer,

Jason McKendrick
303-718-4617

[Tom]

The saga continues....start at the bottom and work your way up.

Hello Dylan and thank you for the quick response.

It appears you are pacifying my issue considering the General Manager is also the Store Coach as well as the Sears Associate I had the issue with; as outlined in my original correspondence. I feel the action you are taking will be a waste of time to all parties, therefore I will tell you not to bother as you have further displayed why Sears has lost my business.

Regards,
Tom

----- Original Message -----
From: "Sears Customer Relations"
Subject: Re: National Customer Relations - (KMM1519101I15977L0KM)
Date: Thu, 18 Sep 2008 12:50:52 -0500 (CDT)

Dear Thomas,

Thank you for your recent correspondence regarding your experience with
one of our stores. We are always interested in hearing from our
customers, and regret it was this type of situation that prompted you to
contact us. We apologize for the lack of assistance at this store.

We have forwarded your message to the Store Coach. They will contact
you within two (2) business days.

Once again, thank you for contacting us.

Sincerely,

Dylan C.
National Customer Relations
Sears Holdings Corp.
Original Message Follows:
------------------------

Hello, I wanted to pass along a negative experience I recently had with
both Sears.com and the Sears store where I went to pick up merchandise
ordered online.

Here in Columbus Ohio we recently experienced a power outage due to a
storm, so I went online and purchased a generator as well as a
maintenance agreement. I confirmed the generator was in-stock and made
the purchase so I could pick up the generator when the store opened.
When I placed the order it simply said the item is in stock so I could
go pick it up. I took my Order #(4417555) as well as my Salescheck
#(093001752555) to the store with me to pick up the generator. The
stores in my area were out of stock so I had to drive 30 minutes to the
Westland Mall location. When I arrived at the store 15 minutes before it
opened there was a line of people waiting to purchase generators due to
the power outage. There was obviously a lot of tension because everyone
wants to take care of their family's needs.

The store's General Manager Mike Higginbotham came out approx. 10 minutes
before the store opened and told the line of people there were only 6
generators available which confirmed the generator I purchased was in
stock. At that time I notified Mr. Higginbotham that I had made a
purchase online and therefore had already paid for one of the generators
and would he please ensure that the generator I already paid for would
be set aside. He said he would go confirm the order and I could pick up
the generator at the receiving window. He never came back to discuss the
matter with me and subsequently sold all generators to the line of
people waiting at the door. He obviously was unwilling to talk to me
about the situation and ignored my request, he immediately hurried to
the back room to avoid me.

In addition to the issue I had, there was no coordination of selling the
generators to what turned into an angry mob within the store of yelling
and pushing customers to buy what was in stock. Mike is a GM and should
have better assessed the situation by taking names of the first 6 people
in line and selling what was in stock in an orderly manner. The
generators were literally up on shelves and the mob was pulling these
very heavy items down onto one another, it was a very dangerous
situation. Luckily no one was seriously injured but there were many
angry customers that were among the first in line but went home empty
handed.

I own a construction company and I always purchase Craftsman products
for my crew because of the excellent customer service and quality of the
tools. I have spent tens of thousands of dollars at Sears for both my
business and personal use and I've always been pleased with the products
and service. Sears products are often more expensive than the Lowes,
Home Depot, and Club stores but Sears offers true customer service which
makes the extra expense worth while. This case has been an exception but
a major one. I have sent a check to pay in full the balance on my Sears
card and I have no plans of shopping at Sears in the future, online or
otherwise. I have been seriously let down by this entire situation and I
did not appreciate the less than respectful way that Mike Higginsbothom
(a store GM!) treated me as a long time customer.

Regards,
Tom