Sears Surrenders to Amazon With Kenmore Appliance Deal
As recently as 2003, Kenmore -- a private brand owned by Sears Holdings (NASDAQ: SHLD) -- held a 27% share of the U.S. appliance market. However, with customer traffic and sales in a long-term downward spiral at Sears, Kenmore's market share has plunged. Kenmore's very limited distribution outside of Sears stores has clearly had a dramatic impact on its sales.
In this episode of Industry Focus: Consumer Goods, the team discusses Sears Holdings' recent decision to start selling Kenmore appliances through Amazon.com (NASDAQ: AMZN). This desperation move will introduce the Kenmore brand to a new set of consumers, which could boost sales. However, in the long run, it will further undermine the viability of Sears' struggling retail franchise.
A full transcript follows the video.
Source: Fool.com
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