Sears decision to move away from whirlpool backfires

[DurhamAppliance]

From the WSJ 8/23/13

"Sears Holdings Corp. SHLD -0.30%built its Kenmore brand into the dominant force in U.S. major appliances over the better part of a century. It only took a few years of tinkering by hedge fund manager Eddie Lampert to take it apart..... "

Since the wsj is now requiring a password for the original article, here is a related story from the WSJ's CFO section

 Sears finished its latest quarter with its lowest share of U.S. major appliance sales in a decade, contributing to a wider fiscal second-quarter loss at the retailer, the WSJ reports. Nearly every other manufacturer and retailer is benefiting as the recovery in the housing market spurs sales of dishwashers, washing machines and refrigerators.

The damage at Sears has a number of causes, former executives and employees say. Sears disrupted a key relationship with Whirlpool that had underpinned the business for decades. Key management positions turned over frequently. Decaying stores that repel customers hurt appliance departments as well. Executives focused on technological gimmicks like giving sales associates iPads that proved more frustrating than useful. Meanwhile, competitors were building up their appliance businesses.

from http://blogs.wsj.com/cfo/2013/08/23/the-morning-ledger-whats-the-sharpest-tool-in-the-feds-toolbox/

All I can say is duh! What on earth was sears thinking?

[DurhamAppliance]

Well maybe I can answer my own question.... this just came in....

August 23, 2013 (CHICAGO) (WLS) -- A federal appeals court has upheld a class-action lawsuit involving washing machines sold by Sears.The ruling clears the way for consumers in six states to pursue their claims together against Sears.Their lawsuit alleges that Sears sold defective Kenmore washing machines.They claim faulty computer controls allowed mold to build up inside the front-loading washers, causing a bad odor.The federal appeals court in Chicago issued the latest ruling after being asked to reconsider the issue by the U.S. Supreme Court.(Copyright ©2013 WLS-TV/DT. All Rights

Maybe Sears is pissed at wp for having stupid mold issues as discussed in the moldy door thread

[telefunkenu47]

Maybe its Karma catching up with them. The fish stinks from the head all the way to the tail.

[Scottthewolf]

That's not it.

 

LG and Samsung can manufacture appliances for Sears cheaper than Whirlpool can. With Sears, money is always the issue.

[montrue]

From the WSJ 8/23/13

"Sears Holdings Corp. SHLD -0.30%built its Kenmore brand into the dominant force in U.S. major appliances over the better part of a century. It only took a few years of tinkering by hedge fund manager Eddie Lampert to take it apart..... "

Since the wsj is now requiring a password for the original article, here is a related story from the WSJ's CFO section

 Sears finished its latest quarter with its lowest share of U.S. major appliance sales in a decade, contributing to a wider fiscal second-quarter loss at the retailer, the WSJ reports. Nearly every other manufacturer and retailer is benefiting as the recovery in the housing market spurs sales of dishwashers, washing machines and refrigerators.

The damage at Sears has a number of causes, former executives and employees say. Sears disrupted a key relationship with Whirlpool that had underpinned the business for decades. Key management positions turned over frequently. Decaying stores that repel customers hurt appliance departments as well. Executives focused on technological gimmicks like giving sales associates iPads that proved more frustrating than useful. Meanwhile, competitors were building up their appliance businesses.

from http://blogs.wsj.com/cfo/2013/08/23/the-morning-ledger-whats-the-sharpest-tool-in-the-feds-toolbox/

All I can say is duh! What on earth was sears thinking?

lifes good but whirlpool better!!!!

[PDuff]

Sadness. 

 

Consumer Reports in the '90's consistently rated the Whirlpool and Kenmore washers at the top of the list for serviceability and reliability.  Sometimes the Kenmore would beat out Whirlpool for the number one spot because it had maybe an extra option or cycle, even though they're the same machine.

 

Just for the heck of it, I checked Consumer Reports present ranking of both top load and front load washers:

 

Front Load Washers                                                   Top Load Washers

 

Kenmore  A+                                                               Samsung  A+

Samsung A                                                                  LG  A

Maytag  A                                                                    Maytag  B+

Electrolux  A                                                                Whirlpool  B+

Whirlpool  B+                                                               Kenmore  B

LG  B+                                                                         GE  B-

[Thirstytech]

The problem sears has isn't the fact that it's not selling as much whirlpool as they used to, the issue is lowes.

 

Lowes leveled their guns about 8 years a go at the two successful business operations sears had : major appliances and craftsman tools

 

Now lowes has passed them by in appliance sales and kobalt tools aren't doing too shabby either (yes I know there not made in the USA)

[DurhamAppliance]

the article states it is a combination of factors including competition. However competition is not within Sears' control. Stupid decision making is.

[BryanS]

This is great. Whirlpool has been putting out some crappy refrigerators here lately. Before I left I was running at least 5-6 sealed system problems in a week on newer whirlpool refrigerators. The quality is a real issue because sealed systems take time and warranty work from whirlpool doesn't pay well. Sears as a whole is chocked full of bad decisions. At some point, I can see their stores going away, but their repair service staying around. The repair side was always profitable, and it's probably what is keeping them afloat. Which is why those morons were constantly hounding us about selling protection agreements this past year. Their problem is they got greedy and lost sight of taking care of their customers. In my opinion that is what has hury Sears the most. I've met some very diehard Sears fans who have paid for 20+ years on protection agreements, but Sears will screw them and that trust is gone.

[Maytag1]

It seams as though, both Sears and Whirlpool have hit the self destruct button! The idiots running things and making decisions just can't see that they are sinking both ships. Sad to see. Back 25 years ago when I first started servicing appliances, Sears only serviced their brand and had a pretty good service dept. then they started the all brand thing. Good techs either retired or died. Now they don't put forth any effort on training their techs. They just want a warm body to show up. Whirlpool is now evidently using Maytag's play book that sunk them ( build junk and sell off old reputation ) it is going to bite them just as it did Maytag. I run my small business profitably, if I could have the reins of either company for just 6 months, I believe they could both be salvaged, but don't think that's going to happen. Well, sad but true! The biggest obstacle I see for these companies is a true lack of qualified techs. They are building high tech junk and soon will have no one to fix them. Now that's a big problem for their survival!

[SWORLD]

As an X Sears service tech. I agree, Once they sold the repair side of the company to K-Mart shortly after K-Mart filed bankruptcy, you knew something had to really be a changing.  Last year they offered to buy out my Retirement plan. It wasn't much, so I passed. I am hoping I will get the offer again. This time I will take the dough and invest it myself. What was I thinking, lol

[DurhamAppliance]

Yeah,  with Whirpool now making  sucky products,  maybe Sears thought it had no choice..... greed is killing both companies. 

[Maytag1]

And it will burry them ultimately unfortunately

[Scottthewolf]

Whirlpool was pretty dumb getting rid of the Direct Drive top load washers.  There MUST have been a way to keep them around. If Speed Queen found a way too keep their top load washers in production, Whirlpool could have done it too.

[Scottthewolf]

I hope  Electrosux's decision to purchase GE backfires and Electrosux goes bankrupt.  We don't need all that warranty work anyhow.

[sh2sh2]

Whirlpool was pretty dumb getting rid of the Direct Drive top load washers.  There MUST have been a way to keep them around. If Speed Queen found a way too keep their top load washers in production, Whirlpool could have done it too.

whirlpool could have done it but then they wouldnt get tax credits from Oblowme

[SWORLD]

I have a DD Kenmore from 1998. I have only replaced the dogs and that was this last summer. I noticed the top is starting to rust by the bleach dispenser. I have an extra top along with other parts at my shop in case it gets bad enough that it needs replaced. I plan on keeping it for another 15+ years

[DurhamAppliance]

Sure the gobermint told appliance manufacturers to be more efficient... but that's no excuse to make crap.

Sh2,they want you to look at the wrong "p". ie it aint Politics it's Profits that drives them. So while you are distracted, looking at the wrong "p", they are, on fact, peeing down your leg.

Edited November 29, 2014 by DurhamAppliance

[SANTA]

I would like to give a great big shout out to Whirlpool for putting me in a higher tax bracket.