Sears Roebuck & Co., once the largest retailer in the US, has been among the hardest hit by the rise of online shopping. During the first three months of this year, sales have slipped 8.3% to $5.39 billion — a loss of $471 million. — during the three months of 2016. Now company officials are considering selling off its popular Kenmore,
Now company officials are considering selling off its popular Kenmore, DieHard, and Craftsman brands to stem the bleeding.
More Big Changes
Sears, which merged with the discount chain Kmart in 2005, is considering the sale of its popular Sears Home Services (SHS) in-home repair business. The company’s chief financial officer, Robert Schriersheim, announced last month that he plans to leave the company.
The brick-and-mortar retailer already has sold its Sears Hometown and Sears Outlet stores, as well as the Lands’ End clothing line. The company also has sold individual store locations and moved others into a real estate investment trust in efforts to raise revenues and cut costs.
Falling Stock Prices
Desperate times call for desperate measures. Sears stock already has fallen 39 percent since the start of the year. CEO Edward Lampert now says its Kenmore appliance, Die Hard batteries, and Craftsman tool lines — collectively known as “KCD” and which are among the company’s most valuable assets, could be next to go.
“Our iconic KCD brands are beloved by the American consumer and we believe that we can realize significant growth by further expanding the presence of these brands outside Sears and Kmart,” Lampert said in a company news release.
“As the ‘internet of things’ develops and as more of our lives become connected, we believe SHS and KCD stand to benefit significantly from broader accessibility,” Lampert said. “By evaluating potential partnerships or other transactions that could expand distribution of our brands and service offerings, we can position both businesses to achieve greater success.”
Tough Times for Iconic Retailer
Earlier last month, Lampert told investors at the company’s annual shareholders meeting that stopping Sears’ losses has been as difficult as closing the US military’s Guantanamo Bay prison in Cuba.
It’s “not so easy,” said Lampert, who also is Sears’ biggest shareholder. “Our focus right now is to show people that we can get this company back to profitability.”
Among the plans to revive the retailer is to strengthen the company’s digital and loyalty programs and to reduce the number and size of its remaining brick-and-mortar stores.