Craftsman to Split/Spinoff from Sears?

[Stuey]

Earlier today I posted an editorial via ToolGuyd about my suspicion that Craftsman will be split from Sears as a Spinoff.

While I had mildly entertained this theory before, red flags were thrown all over the place when I saw that the new 2010-2011 tool catalog doesn't mention Craftsman on the front cover anywhere. Not even "featuring Craftsman tools".

More commentary here, but feel free to skip it.

What do you guys think? Wild conspiracy theory, or logical prediction?

Oops, I forgot to add a poll. Sorry. Vote with words.

 

[Flash21]

I noticed the same thing and I DO think it means something. I think they are trying to start a brand / image change to break the Sears - Craftsman association.

 

[jkeyser14]

When I was at the local Sears around Christmas the manager in the tool section was actually talking to his Employees saying that Sears was trying to sell off the Craftsman line. I didn't believe him since he's just a local manager, but I guess there's some truth to what he was saying.

 

[Displaced Hokie]

It might be that Craftsman is the only asset that has much value in the whole Sears/K-Mart congolmeration. Thus, if they can farm out Craftsman it may generate more revenue.

Another idea is that the diversification via the "blue tool crew" will allow Sears to reduce the Craftsman line, thus saving R&D $$$. It is much easier to just sell "Brand X" pliars versus having Craftsman branded one's you had to source, test, brand, etc.

Something his definately up, and "Branding" is a big deal in business. There is a plan here for sure...

 

[poprockcrusher]

craftsman ? value ......oh ok

 

[RbrtAWhyt]

It seems to me like in the past couple of years Sears has added a bunch of new tool lines to their line up. I noticed in this last catalouge that they had a large selection of Stanley tools. I didn't really notice that before...

 

[boostedgt]

craftsman is pretty much the only reason to go to sears

 

[charlie_nj]

I don't know if anyone's posted this article yet, but it goes right along with what you guys are saying.

http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201002191913dowjonesdjonline000642&title=sears-agrees-to-sell-craftsman-tool-brand-at-ace-hardware

 

[TheGrooveking]

craftsman is pretty much the only reason to go to sears

+1, what else do you go to Sears for if not tools?

TheGrooveking

 

[TheGrooveking]

Maybe Danaher will be buying them in total.

TheGrooveking

 

[Stuey]

Maybe Danaher will be buying them in total.

TheGrooveking

I don't think so - there are too many other OEMs involved with Craftsman for that to happen.

 

[mrb]

theyre also doing heavy TV marketing with little or no mention of sears.

 

[Charles (in GA)]

+1, what else do you go to Sears for if not tools?

TheGrooveking

Sears is an excellent place to buy appliances.

Charles

 

[Lhorn]

When you catch a sale, they have some decent prices on flatscreen TVs too.

 

[Joe B.]

Maybe they are trying it out to see what happens. Granted, I don't think Ace would ever have the sales volume to replace the Sears stores. I'm sure if it works, there will be more of the same thing. If it does not, they will end the relationship and things will go back to the way they were.

Don't overestimate the ability of big companies to know what will happen in the future. The people that work for them are not any smarter than any of the rest of us.

 

[TireTracks]

Well, i'm exited they might start selling craftsman tools at ace hardware, just hope they dont kill off the Ace tools completly, everything i have is nice.

 

[Fedwrench]

Six on one hand half a dozen on the other...
Perhaps Sears is trying to be like another Amazon by drop shipping other tools directly from their manufacturers. Sears could save a lot on money spent on Craftsman tool warranties if they sold brands they didn't have to warranty. Whatever the outcome, time will tell....
The new catalog is an improvement over last years although they still missed the boat on the open stock items again.
I see that they're offering free shipping and setup on they new ultra expensive professional industrial tool boxes. I also see that they brought back the old style 36 inch wide professional unit in Black. the picture on page 26 doesn't show the push handles on the cart though. Lots of new choices and brands. A few new air tools. Prices up slightly...

 

[jah304]

My friend works at a local Sears in the tool dept. He was told that if they spin it off, they will try to compete with Mac, SO and Matco with tool trucks and the whole thing.

 

[Kev442]

When I saw rack after rack of Evolve tools, I ran from the store. So long Sears, I doubt I'll be back.

 

[jmauld]

When I saw rack after rack of Evolve tools, I ran from the store. So long Sears, I doubt I'll be back.

I was noticing that this weekend. To me, this makes me feel like craftsman tools are no longer a viable brand and will be dropped soon.

Because of this, I'll be shopping other brands.

 

[Mickey O]

Sears is an excellent place to buy appliances.

Charles

I think Sears is/was the top seller of appliances.

 

[hammergodthor]

Six on one hand half a dozen on the other...
Perhaps Sears is trying to be like another Amazon by drop shipping other tools directly from their manufacturers. Sears could save a lot on money spent on Craftsman tool warranties if they sold brands they didn't have to warranty. Whatever the outcome, time will tell....
The new catalog is an improvement over last years although they still missed the boat on the open stock items again.
I see that they're offering free shipping and setup on they new ultra expensive professional industrial tool boxes. I also see that they brought back the old style 36 inch wide professional unit in Black. the picture on page 26 doesn't show the push handles on the cart though. Lots of new choices and brands. A few new air tools. Prices up slightly...

I totally agree, the beancounters are trying to save money. I think warranty prices have probably gone up, but not the selling prices/revenue. Basically I think they are selling their tools too cheap, they can't afford to warranty them for what they are selling them for. I'm DON"T want their prices to go up, and I don't think their tools are the best, but I can guarantee money is most of the decision.

 

[tonydanzah]

That cover still shows a cman torque wrench.

 

[woody 73]

I never see many shoppers at sears stores I think after k-mart bought sears things might change ; I wonder sometimes how sears stays in business maybe as everyone has posted sears might spin off craftsman tools.

 

[ImportTuner]

Spinning off Craftsman would be a real bad idea for Sears .. but Corporate America is only interested in the bottom line (what kind of profit can we make this quarter).

 

[jcfields]

I think Sears is/was the top seller of appliances.

Yeah, I see Kenmore stuff everywhere. They're pretty big in fitness and lawn and garden stuff too. It's amazing how corporate brass can take a company with so many clear strengths and run it into the ground like this.

 

[Fedwrench]

That cover still shows a cman torque wrench.

There are numerous Craftsman tools on the cover but, it's no longer a Craftsman Tool Catalog.

 

[Joe B.]

It does not tell you everything but you can get a pretty good idea of what the Chairman of Sears Holdings is thinking in his letter to shareholders from last month.

http://searsholdings.com/invest/

We have chosen to invest primarily in areas of our business that we believe will yield long-term growth and attractive returns. These areas include our online businesses, our service businesses, our Kenmore, Craftsman and Lands’ End brands, and some of our alternative formats like Hometown Stores and Outlet Stores. We will continue to experiment and explore ways to materially improve our Kmart and Sears Full Line store experience and competitiveness. To this end, we have made substantial investments in our online platform and in the in-store and mobile technology that enables multichannel experiences under our ShopYourWay banner. We believe that we are on the right track, with an acute customer focus internally, which should yield improved results for our customers and our shareholders externally.

Despite perceptions, we have not hesitated to open new stores when the economics make sense, including opening new Sears Outlet and Sears Hometown stores in 2009. With roughly 100 Outlet stores and almost 1,000 Hometown stores, these alternative formats represent both sources of profit and sources of growth for Sears Holdings. While both are small relative to the Kmart and Sears Full Line store formats, they serve their customers well and provide a Sears presence in smaller spaces and less populated communities.

 

[J.A.F.E.]

I just got a catalog today and was wondering the same thing. Oddly, the cover of the one I got is different but no mention of the CMan on it except for the logo on the saw in the picture.

They seem to have increased the brand range of offerings. They have even included the garbage import hand stanley branded tools stanley hypes like a corner pimp hawking cheap "dates". There is considerable overlap in products too.

It looks like Sears is beginning to separate the association between CMan and Sears to me.

They do offer the Wera Zyclops both as indivdual ratchets and in the sets in the catalog.

 

[billymade]

Didn't last years catalog just say "tools" on the top? I always figured if Sears went under; someone would continue the Craftsman brand but who knows....

 

[Stuey]

Didn't last years catalog just say "tools" on the top? I always figured if Sears went under; someone would continue the Craftsman brand but who knows....

Yep, but also said "featuring Craftsman", and Craftsman tools occupied much more real estate inside the catalog itself.

Inside there's like a rainbow of brand names, and Craftsman is now in the mix, the same size or even smaller than some of the other names.

Taking a look at the catalog, you would never know that Craftsman was a major Sears brand.

 

[Fedwrench]

Has anyone else noticed that the prices on all of the non Cratfsman stuff is still pretty high compared to other online vendors? I would think that if Sears wanted to branch out into other brands they would make their pricing more competitive.

 

[Crash913]

Why is it when you search for a tool at Sears.com they display items from a load of random sellers?

 

[allapanoo]

I would bet that Harbor Freight has really cut into their tools sales and is now probably their chief competitor. A new one opened near me and its about two minutes away from Sears and it is packed all of the time.I have noticed too that Sears prices are way out of line on the other brand tools that they carry if you shop around online.Sears is also trying to be more like Amazon with items from multiple sellers just like Walmart is.

 

[hammergodthor]

I would bet that Harbor Freight has really cut into their tools sales and is now probably their chief competitor. A new one opened near me and its about two minutes away from Sears and it is packed all of the time.I have noticed too that Sears prices are way out of line on the other brand tools that they carry if you shop around online.Sears is also trying to be more like Amazon with item from multiple sellers just like Walmart is.

I concur!


10 char

 

[Scooterfish]

I think Sears is/was the top seller of appliances.

I was told by someone from Wirlpool that Lowe`s is the #1 buyer/seller of Wirlpool having passed Sears.

As for the CEO above saying they are investing heavy in their online store.. It`s the biggest pain in the a** site I`ve ever been on.

 

[Davefr]

I would bet that Harbor Freight has really cut into their tools sales and is now probably their chief competitor.

That's precisely the reason. Sears can't rely on the Craftsman brand to compete with HF, and the Chinese brands offered at NT, HD, Lowes, AZ, etc, etc, etc.

Sears tools used to mean Craftsman. They need a low end offering and are distancing themselves from the heavy reliance on the Craftsman brand.

The catalog makes perfect sense. Sears sells tools and Craftsman is one of many brands to choose from, along with Evolve, Companion, SK etc. (good, better, best branding)

Meanwhile the Craftsman brand is generally highly respected and has built up a lot of brand equity. So why not take advantage of it by branching out. For every Sears B&M store, there must be 10-20 Ace Hardwares. The Ace tool brand is << Craftsman in brand equity. (not necessarily tool quality).

It's all about branding effectiveness.

 

[kburns]

Maybe Danaher will be buying them in total.

TheGrooveking

In one of the finanacial publications I read, there was a short blurb about Danaher that basically said that they are planning to redirect their investment strategies toward the medical equipment industry. No real details were given, so I have no idea what that means about their present or future investments in the hand tool industry.

 

[Scooterfish]

In one of the finanacial publications I read, there was a short blurb about Danaher that basically said that they are planning to redirect their investment strategies toward the medical equipment industry. No real details were given, so I have no idea what that means about their present or future investments in the hand tool industry.

I hope this doesn`t mean surgeons will soon be using today`s lower quality of Craftsman in the OR. You may want to inspect your surgeon`s tools/equipment before any procedures.

 

[Bruce Lancaster]

"they are planning to redirect..."
I think it just means that heavy forging and plating operations need to be centered in Asia, because that's much cheaper and because these are environmentally dirty and nasty industries easier to run elsewhere. Medical widgets are small and allow gigantic prices...plus, more and more medical stuff is disposable so market is endless. No damn surgeons bringing back thirty year old scalpels that snapped off in someone's gizzard on their 975th operation...