Sears May Sell Store Brands at Rival Locations

SHARE:

Email

Print

LinkedIn

Facebook

Twitter

November 1, 2011

Sears brands may soon be appearing in more stores than those bearing the Sears name as the retailer looks to build the brands into a business even as stores continue to struggle.

Sears Holdings, the parent company of Sears and Kmart, has been branching out by offering its iconic store brands through other retail outlets. It now appears that more deals are in the works, as are licensing agreements to produce ancillary items under the private labels.

The Chicago Tribune is reporting that “sources close to the company” confirm the initiatives. “As part of our strategy to grow the value of our proprietary brands, we evaluate all avenues including extending the brands into new markets and categories," Sears responded to The Associated Press. "As part of that evaluation, we consider a variety of partnership structures and consider both agency based and direct licensing relationships."

Sears recently struck deals to sell Craftsman tools at Costco stores and is expanding a program that does the same at Ace Hardware stores. In September, Sears announced plans to sell DieHard Gold auto batteries at Meijer discount stores. Both deals are very recent, and some industry observers believe the Kenmore brand will follow suit, but Sears has not confirmed that suspicion.

Sears’ Kenmore brand recently regained its spot as the top selling appliance brand in the U.S., according to the company, but it has also lost total market share as rival brands divide the remaining customer base, according to Shopper Trac survey conducted for Twice magazine. Sears market share has eroded by nearly 10 percent from its peak of 40 percent in the 1990s, according to independent analysis, but it remains a profit center for Sears. Sears’ new initiative may hinge on licensing the store brands in addition to selling through rival retailers.

Several years ago, Sears Chairman Eddie Lampert formed a separate business unit around Sears’ three largest store brands, however the executive in charge of that unit left the company early this year and the spot has yet to be refilled.

Read These Related Articles:

• Co-Founder of Costco and Kirkland Signature Brand to Retire
• Sears' Private Label Craftsman Brand Unveils Interactive Store
• Ace Hardware to Sell Craftsman Tools

Most Read

Guest Columns

Grocery Aisle Innovation Key to Retailer and Consumer Cost Savings

Retailers are redesigning the aisle, appealing to environmentally friendly consumers and capitalizing on market trends to make their private label brands more competitive.

Source: Tetra Pak Inc.

How to Develop a Private Label Expression Aligned with Retail Brand Strategy

By creating private label as a marketing tool rather than just a price alternative, retailers gain the opportunity to tell a complete brand story while simultaneously boosting customer loyalty.

Source: CBX

Using the Store Banner to Endorse Private Label Architecture

Although the economic downturn accelerated private label growth in Europe, there was another key driver -- retailers started to brand their stores.

Source: IPLC

See All Guest Columns »

Press Releases