The Sears Death Spiral is picking up speed. Last week it was the entirety of Sears Canada, and now it’s 90+ year relationships gone bad. Here’s the latest…
This morning started out with the bitter “It’s not me, it’s you” break-up between Sears and Whirlpool.
Sears Holdings is cutting its century-old ties with Whirlpool and will no longer sell the company’s products, which include Maytag, KitchenAid and Jenn-Air subsidiaries, according to an internal Sears memo sent to stores last week. The memo was reviewed by CNBC.
“Whirlpool has sought to use its dominant position in the marketplace to make demands that would have prohibited us from offering Whirlpool products to our members at a reasonable price,” Sears wrote to its employees.
The Wall Street Journal first reported on the news Monday evening.
Sears said it plans to sell Whirlpool-branded products in its facilities until inventory is “depleted.” Meantime, Whirlpool will continue to manufacture items for Sears’ Kenmore nameplate, the companies have confirmed.
Department store chain Sears added that it will provide “tools and instructions” to its employees regarding how to deal with “excess inventory,” and how to move into its Kenmore or other appliance brands.
Adding insult to injury, recall that the iconic tool brand Craftsman was purchased by Stanley Black & Decker. Now, as it turns out, Lowe’s will begin selling Craftsman tools as early as today, October 24th, 2017.
Here’s more from CNBC:
Stanley Black & Decker has chosen Lowe’s as the next retail destination for its Craftsman brand, which it bought from Sears Holdings earlier this year.
Sears had controlled the iconic tool name for 90 years. Now, Craftsman is looking to grow with its new owner through other retailers.
“We have been more than impressed with the level of commitment and support afforded by Lowe’s for the Craftsman brand,” the president of Stanley Black and Decker’s global tools and storage division, Jeffrey Ansell, said on a call with analysts and investors Tuesday morning.
“We continue working with other channel partners and continue to provide them with successful programs to facilitate their growth as well,” Ansell added.
In buying Craftsman, Stanley Black & Decker paid $525 million in cash to Sears, also promising to make a $250 million payment at the end of year three of their relationship. Additionally, the company will send annual payments to Sears of between 2.5 and 3.5 percent on new Stanley Black & Decker sales of Craftsman products through year 15.
Recall that last week we posted the Retail Apocalypse Watch article in which we highlighted the fact that Sears Canada is closing all of it’s stores starting this month and some 12,000 employees will be out of work.
However, there’s this:
Stock Market just hit another record high! Jobs looking very good.
— Donald J. Trump (@realDonaldTrump) October 24, 2017
However, the market and Sears ain’t buyin’ it:
Neither are the real lives affected by the retail apocalypse.
It is not great again.
In fact, it’s getting worse: