Factset: FactSet Research Systems Inc.2019. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Sears shares fell 3%, though most of that drop happened after a separate announcement that rival Lowe's will start selling Craftsman branded tools, which had been a Sears brand. Whirlpool ( WHR) shares were down 10% in early trading Tuesday. In its statement the company said that Sears accounted for only 3% of its sales worldwide, and that most of those sales are the Kenmore-branded appliances that it will continue to make. It did not mention splitting up with Sears. Whirlpool attributed the poor earnings to higher costs for raw materials. The breakup is also bad news for Whirlpool, which on Monday reported disappointing earnings and trimmed its profit outlook for this year. Though the deal could lift sales of Kenmore products, it could further diminish Sears' ability to bring in customers. For years, it was the only retailer selling Kenmore products, and ads bragged that Sears was the only place where customers could shop for all the major appliance brands.Įarlier this year, Sears announced it would start selling Kenmore-branded products on Amazon, the first time it allowed them to be sold anywhere outside of a Sears store. Its wide variety of brands is one advantage it still has to attract customers.
It has also fueded publicly with some suppliers, who have been reluctant to sell their inventory to Sears because they worry Sears won't be able to pay them.Īppliances are a big part of Sears' business. It has been steadily closing stores in an effort to stem years of losses. Sears Holdings ( SHLD), which includes the Sears and Kmart chains, warned in March that it had " substantial doubt" about its ability to stay in business. Related: Sears to sell Kenmore appliances on Amazon Whirlpool issued a statement saying that it will no longer supply Sears with its branded products, without giving a reason. "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," said the memo, which was provided to CNNMoney.
0 kommentar(er)
