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

Inside CR Test Labs: Measuring washing machine performance

It’s one thing to wish away stains that are both metaphorical and real, as in Lady Macbeth’s tormented line, “Out, damned spot! Out, I say!” (Macbeth, Act V, Scene I). But in the Consumer Reports test labs, we do our darnedest with literal spots and stains in our assessments of how washing machines remove grime from a variety of common sources.

For our washing-performance test, we use industry-standard strips of sewn-together six-patch swatches (shown). Before washing (top swatch), each patch gets soaked in either cocoa, wine, sebum—that’s human sweat—or oily charcoal dust. For the Lady Macbeths out there, there’s even a blood patch, along with an untreated control patch. Several strips go into each of various normal and heavy-duty cycles in both an 8-pound and a maximum-size load.

After washing, our technicians analyze the swatches and compare the results using a special instrument, called a colorimeter. (They use the same device to analyze the swatches before washing, too.) The middle swatch shown was washed in the front-loading Kenmore Elite HE5t Steam 4778, without steam; this model scored excellent for washing. The bottom one is a reference swatch indicating how a model that rated a poor in wash performance would do. Compare that swatch to the unwashed sample at the top, and it’s nearly, well, a wash.—Ed Perratore

Essential information: Read our February 2008 report on washers and dryers, then refer to our Ratings of front- and top-loading washers and dryers to find the model that’s right for your family. And if you’re having trouble with spots, see our washing tips and laundry detergents coverage. Finally, watch how we tests washers in our labs.

International Builders' Show Product Preview: GE Profile WPDH8800J Washer With SmartDispense

All washing machines are set-it-and-forget-it when it comes to the water—but it’s still up to you to measure and add the detergent. We’ve seen liquid-detergent-and-fabric-softener dispensers for washers before, but GE’s new Profile WPDH8800J front-loader (left in the photo) is the first washer designed to dole out the right amount of detergent and softener based on the load size, soil level, fabric, cycle, or even water hardness. Called SmartDispense, the new feature is built into the pedestal below the Energy Star–qualified washer and has a claimed capacity of up to 350 ounces of detergent and 85 ounces of fabric softener—roughly six months’ worth for a typical household.

Costing $1,800 with the pedestal, the washer and its matching model DPVH880 dryer, $1,329, aren’t cheap. If you’re willing to dispense with the SmartDispense feature, you’ll find high-scoring front-loaders from our washer tests for as little as $650 and top-loaders starting at $400.

The washer and dryer will be in stores in July.—Kimberly Janeway

Essential information: Read our latest report on washers and dryers.

Buzzword: Algorithm

What does it mean? An algorithm is a step-by-step process for solving a given task. The term derives from Persian mathematician Mohammad ibn-Musa al-Khwarizmi (780-850), who’s considered the father of algebra. In a modern context, algorithms are often associated with computer programmers, who use them to tell the machines not just what to do but also how to do it. Google, for example, uses algorithmic techniques to establish PageRanks, which in term determine which sites pop up when you search a term or phrase.

Why the buzz? At Consumer Reports, we’re increasingly encountering the term algorithm in reference to smart appliances: dryers that know when loads are dry, refrigerators that can self-regulate their temperature, and dishwashers that sense when dishes are done. (You can bet the dishwasher shown, from a 1952 Consumer Reports article, did not feature such gadgetry.)

This leap forward in appliance design started years ago when electronic controls replaced mechanical ones. On a range, mechanical controls limited you to turning on the appliance and setting its temperature. You had to make any subsequent adjustments on your own—say, turning down the temperature during the cooking process. More-sophisticated electronic controls have allowed manufacturers to develop software settings based on an understanding of how food reacts at different temperatures.

The pizza setting on two new GE Profile electric smoothtop ranges, for instance, use algorithms to distinguish between fresh and frozen pizzas so the cheese melts evenly without burning the crust. Those same ovens have a slow-cook mode that uses algorithms. “With slow cooking, you can’t just put the oven at 180°F and leave it there,” explains Brian Steurer, systems manager at GE for free-standing electric ranges. “If it’s a beef dish, you first have to raise the temperature to break down the collagen. Then you gradually lower the temperature to tenderize the meat without boiling away the moisture.”

“Algorithms are a good thing if they do what you want them to,” says Robert Karpel, a project leader in our Tech department who handles appliances. But that’s not always the case. The soil sensors on some dishwashers misread dirt levels and increase wash time and water use even if the loads are only lightly soiled. In other tests, algorithmic settings prove no more sophisticated than standard settings: The pizza mode on those GE ovens, for instance, was only as effective as the conventional oven control.

We’re not suggesting you avoid algorithmic bells and whistles, but don’t base a purchase on them—you might end up spending more for no noticeable performance enhancement. Instead, read our reports and Ratings of washers and dryers, ranges, and dishwashers. If a feature ends up saving you time or does a better job at a given task, so much the better.—Daniel DiClerico

Q&A: Do steam laundry appliances work better than regular washers and dryers?

I've seen a growing number of steam-equipped washers and dryers in stores. How well do these machines work?

As we noted in our February 2008 report "Washers and Dryers: Performance for Less,"€ more manufacturers are adding steam capability to their laundry appliances. (We've also tested steam dishwashers, including the LG LDF9810[ST].)

Three front-loading washers we tested—Kenmore (Sears) Elite HE5t Steam 4778[1], $1,600, LG Tromm SteamWasher WM2688H[WM], $1,500 (shown), and Whirlpool Duet Steam WFW9600T[W], $1,600—€”are equipped with steam modes designed to boost cleaning, sanitize fabrics, and remove stains. Each machine did a better job at removing stains with the steam setting, but these models cleaned well even without steam.

We also tested the steam modes of the matching Kenmore (Sears) Elite HE5 Steam 8772[1], $1,300, and Whirlpool Duet Steam WED9600T[W], $1,100, dryers; they use a water hookup and heat to generate steam. In steam mode, both dryers did a good job of getting rid of wrinkles and odors from the shirts we tested. Note that the steam mode allows only up to four garments per load. Another wrinkle: These dryers cost about twice as much as the Best Buys from our latest report.

Essential information: If you're in the market for new laundry appliances, see our buying advice for washers and dryers. Then check our Ratings of washers and dryers (available to subscribers).

Kenmore HE5t Steam Washer: First Look

The addition of steam makes this HE5t one hot performer.

Price we paid: $1,600

Date of Consumer Reports full report: February 2008

What it is. This front-loading washer, model 4778, is an updated version of the HE5t model we’ve previously tested, but it adds Steam Treat, which is supposed to enhance cleaning performance.

When you push the button to select the Steam Treat option, available for five of the machine’s wash cycles, the water temperature is automatically set to warm. As the wash cycle progresses, the water is slowly heated and steam is introduced into the tub. Sears claims the steam washer will provide "optimal removal of organic stains" (food and blood) and "temperature-sensitive stains" (oil), and is designed for "heavily soiled loads that need improved stain treatment, loads with multiple types of stains, or loads you suspect as having stains, but are afraid may have been missed."

This Energy Star–qualified appliance is available at Sears stores nationwide. It comes in white or red (shown; Sears calls it Barolo) and has a stainless-steel wash basket, a sanitize temperature, and a clean-washer cycle to keep the interior clean (we haven’t tested those features).

What we liked. In initial testing, the HE5t has delivered excellent wash performance with and without the steam option. However, when using the steam option, performance has been somewhat better. Among its appealing features are an extra-large capacity (a claimed 4.0 cubic feet), quiet operation, and high marks for water and energy efficiency.

What we didn’t like. The long cycle times. A load using the heavy-duty cycle runs 1 hour, 40 minutes—not uncommonly long for a front-loader--and more than 2 hours with the steam option. The HE5t also has proved to be not as gentle on clothing in small and large loads as most of the other front-loading machines we’re testing.

Our initial take. Our preliminary testing shows this washer to be a top-notch appliance, though it is expensive. Indeed, you can get similar washing performance from the nonsteam HE5t for several hundred dollars less.

Use our free buying advice if you’re in the market for a new washing machine and learn how to set up a laundry room near your living space. And look for our latest report on washers and dryers in the February 2008 issue of Consumer Reports.                         

Black Friday sales for the home

Sales the day after Thanksgiving—Black Friday—can mean big savings on home items both big and small. Whether you’re talking tools, appliances, or home furnishings, deals are available at the major retail stores as the end-of-year holidays approach.

While Consumer Reports has not tested many of the products listed here, our free buying advice (listed with each section) can help you make wise shopping decisions. Also check out our all-star appliances and kitchen gear, and be a smart shopper when you’re looking for new kitchen and laundry appliances.

Check local store locations for product availability, and note that prices and models are subject to change. (Prices have been rounded up to the nearest dollar.)

For more information on Black Friday deals, visit Black Friday 2007.—Helen A.S. Popkin

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