four.cycle
Well-known member
^ Wilde is also supplying Tekton.
Stanley Black & Decker buys Craftsman
- Thread starter Parrothead
- Start date
Stanley Black and Decker would not have purchased the Craftsman name without knowing the direction they would produce and market this brand.
The Craftsman tool line has been a strong market brand. The last couple of decades Sears has eroded that. Look how poorly Sears sales have been and the debt the company has incurred under extremely poor management.
We can only hope for a bright resurgence of the Craftsman tool line in the next year or two!
The Craftsman tool line has been a strong market brand. The last couple of decades Sears has eroded that. Look how poorly Sears sales have been and the debt the company has incurred under extremely poor management.
We can only hope for a bright resurgence of the Craftsman tool line in the next year or two!
wssix99
Well-known member
Mohawk Dave
Well-known member
sberry
Banned
This is probably true but how much does all this matter, its the same **** in a different box.
reader2580
Well-known member
Does the Craftsman name really have any value for outdoor equipment? I might buy a Craftsman tool, but I didn't even remember Craftsman sells outdoor equipment when looking at snowblowers recently.
dnschmidt
Well-known member
Seems like a fire sale to me. 900M paid over a long period of time for what many would argue as being one of the most famous names in tools. Sears must truly be desperate. Look at what SBD paid for Newell-Rubbermaid's Irwin business. They stole this.
My view is that the Craftsman situation could not get any worse. No matter what SBD does with it it's got to improve or at least not get any worse. So I think it's a net positive.
My view is that the Craftsman situation could not get any worse. No matter what SBD does with it it's got to improve or at least not get any worse. So I think it's a net positive.
OP
Parrothead
Well-known member
I bought a used Craftsman lawnmower for my renters (nice rental w/ SS appliances, etc.) to upgrade my MTD powered Honda, and their reaction was "Oh, a Craftsman! That's a good one!". The name carries much more value to John and Jenny Homeowner than it does to the tool geeks on here.
The investor relations power point available on the Stanley website provides some interesting insight into Craftsman's potential for them. Some of the key takeaways are:
Craftsman current retail sales stats
--tools 35% (25% hand tools; 10% power)
--Lawn & Garden 40% (25% tractors & mowers; 15% L&G)
--Storage/other (jacks; compressors; garage door openers ect.) 25%.
The channel expansion/revenue opportunities they highlight are:
Retail Channel
--expand distribution to new and existing non-Sears retail & e-commerce channels
--leverage made in USA expansion
Industrial Channel
--expand product distribution points
--leverage MAC mobile conversion program (curious one here--maybe Craftsman Pro replaces the Expert line)
Lawn & Garden
--potential to license brand to outdoor manufacturers
--sell through dealer networks (curious one here too. What dealer network).
Craftsman current retail sales stats
--tools 35% (25% hand tools; 10% power)
--Lawn & Garden 40% (25% tractors & mowers; 15% L&G)
--Storage/other (jacks; compressors; garage door openers ect.) 25%.
The channel expansion/revenue opportunities they highlight are:
Retail Channel
--expand distribution to new and existing non-Sears retail & e-commerce channels
--leverage made in USA expansion
Industrial Channel
--expand product distribution points
--leverage MAC mobile conversion program (curious one here--maybe Craftsman Pro replaces the Expert line)
Lawn & Garden
--potential to license brand to outdoor manufacturers
--sell through dealer networks (curious one here too. What dealer network).
Empty Pockets
Well-known member
mopar_johnny
Active member
This article says that Stanley intents to build a $35 million plant to move more manufacturing back to the US. That could be interesting to see what comes of that, or it could be a bunch of hot air.
http://www.usatoday.com/story/money...ars-holdings-craftsman-donald-trump/96192526/
http://www.usatoday.com/story/money...ars-holdings-craftsman-donald-trump/96192526/
nickjj
Well-known member
But Sears could go bust at any minute, so some cash straight away is better?
Does Sears even own the rights the brand names?
"in 2007, the company placed its three major brands in KCD IP, a "separate, wholly owned, bankruptcy-remote subsidiary". KCD stands for the three brands: Kenmore, Craftsman, DieHard. KCD IP then issued $1.8 billion in bonds that were sold to Sears' insurance subsidiary based in Bermuda. Sears would thus pay KCD for use of the three brands' trademarks"
I expect that Craftsman branded everything will show up in Costco, Walmart and Amazon?
nickjj
Well-known member
A $35m plant sounds impressive, but would be quite small in reality?
outdoorspace
Banned
- Joined
- Jan 28, 2014
- Messages
- 356
That is my understanding, yes. Western Forge supplies fixed-joint pliers to Armstrong and Wilde supplies slip-joint, tongue-and-groove and lock ring pliers.
B_Bimmer
Well-known member
nbpt100
Well-known member
I agree. I have read in investment journals over the past 10 years that it was all about the real estate Sears and K mart owned. As long as Lambert is at the helm I have no hope for this companies future.
It is sad how a great brand is driven into the ground so some guy can personally profit. Sears use to employ thousands and thousands of people with good jobs and provide a department store to many communities with tons of decent offerings that were stood behind.
My fathers friend worked in a Sears warehouse his entire working life since he was 18. He retired about 25 years ago a millionaire from the Sears Stock he acquired through the retirement plan. Not bad for a warehouse worker.
It is not clear what Stanley will do with the brand.
I hope they will improve on the quality and honor the Lifetime warrantee. Only Time will tell.
EOC_Jason
Well-known member
Depending on location and what it's going to produce.... Yeah, a $35M "plant" could end up being a 10,000sq ft warehouse in Long Beach....
It's obvious that Stanley waited to see how Sears did during the holiday and the additional store closings to get a better price on the name.
I think a *lot* will have to do with what future increase in import tariffs might be put in place against China & Mexico. I read the press release saying that's why they are building the plant, in anticipation of that. (So they claim.) But it might just give these companies the bump they need to go back to these US companies and have them start produce larger quantities and better quality products for them.
It seems that SBD has the rights to create and produce their own new CMan products, while at the same time SH has the right to create new products too and keep them exclusive to their stores. That seems like it might create a little confusion for the consumer, especially if warranty is involved.
Stanley doesn't really have any Lawn & Garden products except for the cheap battery powered Black & Decker stuff. Adding Craftsman stuff would give them gas powered equipment to stick in all the Lowes & HD stores. It's a whole new revenue stream for them. As was mentioned by someone elses post, that's 40% of Sears sales, imagine if they got those products in big box stores?
I don't see the C3 line being expanded by Stanley. They have Dewalt, Porter Cable, and Black & Decker already... I'm sure they will sell it, but I doubt they will bother to try and make them their top tier... But also sticking them in the big box stores doesn't make sense when Ryobi is there in HD.
Hand Tools... It's a lot like Chevy & GMC... Same factory produces them, just depends on the day of the week. Why make two or three identical products just with different names? Because people WANT a certain name and think said name is the best value for them... I can see Stanley consolidating a lot of hand tool production, maybe even focusing more on Industrial & Government contracts? Again, depending on what happens with imported goods, there's a slim chance you might see Kobalt & Husky either slowly shrink or they might switch to USA too. Slim chance, but it's there...
This could be a move to replace Crescent & Irwin branded tools in the big box stores with Craftsman. Crescent is also big in the Tractor Supply stores. Newall is SBD's biggest competitor... I don't know what all brands Northern Tool sells, they don't have any of those around here.
I've never even looked at tools in auto parts stores, if I ever was going to buy one I would probably thing NAPA would have the best selection. I don't think that would be a target Stanley would want to fight for as it wouldn't generate nearly as much sales as regular hardware stores, big box stores, and the country general stores.
Re: Sears selling Craftsman to Stanley
I read an article on the Walden Galleria sears closing, liquidation starts today
Sad to hear because every time I went to Buffalo I went to their tool section, First time I ever went I was in awe because here in the greater Toronto area sears tool section is almost non existent.
I guess that calls for a road trip soon
I read an article on the Walden Galleria sears closing, liquidation starts today
Sad to hear because every time I went to Buffalo I went to their tool section, First time I ever went I was in awe because here in the greater Toronto area sears tool section is almost non existent.
I guess that calls for a road trip soon
pauls_workshop
Well-known member
Note that Stanley/B&D just bought the tool division of Newell, which is Irwin and Lennox. SBD now owns the Vice Grip brands (which can only be a good thing, since Newell destroyed the quality of Vice Grip). I see that and the Craftsman moves being very smart by SBD. We'll all have to see how it plays out in the hand tool area. - Paul
bczygan
Well-known member
Re: Sears selling Craftsman to Stanley
Don't waste your time with a road trip.
The liquidation "sale" for my local Sears was a joke.
2 years of **** stuff brought in for deep discounts, while the good stuff was marked down just a tad from full retail, so really just usual prices.
By the time any real discounts arrived, everything was picked over or shipped to other stores.
Bill
Don't waste your time with a road trip.
The liquidation "sale" for my local Sears was a joke.
2 years of **** stuff brought in for deep discounts, while the good stuff was marked down just a tad from full retail, so really just usual prices.
By the time any real discounts arrived, everything was picked over or shipped to other stores.
Bill
pauls_workshop
Well-known member
Yes, many people have fond memories and even some more recent experiences of good value in the Craftsman lawn/garden area. Huskvarna used to make their tractors. Many suppliers make the more recent ones and push mowers, but there is brand recognition there. Good way for SBD to enter this space in a big way. As mentioned here, this may be most of the reason they did the Craftsman deal. - Paul
anndel
Well-known member
Re: Sears selling Craftsman to Stanley
Same here with both Sears and Kmart closings. My friend and coworker said she and her friend were going to wake up at 3:00 am and stand in line at a Kmart closing. I told her it was BS because they just have to box up the stuff and drive it to the other store. She said that sales were on useless ****, ugly clothes, etc. All the good stuff went to the other location.
Same here with both Sears and Kmart closings. My friend and coworker said she and her friend were going to wake up at 3:00 am and stand in line at a Kmart closing. I told her it was BS because they just have to box up the stuff and drive it to the other store. She said that sales were on useless ****, ugly clothes, etc. All the good stuff went to the other location.
mopar_johnny
Active member
Same thing I saw when my local Sears closed. Definitely not worth road tripping for. I had gotten better deals on Black Friday sales then their liquidation sale
byoungblood
Well-known member
Re: Sears selling Craftsman to Stanley
When one of the local Sears closed around here, it was pretty obvious they were about to close the store beforehand. Weeks leading up to the announcement the stock levels just dwindled down to about nothing. By the time the time of the liquidation "sale" it was just nothing but scraps marked up to full list or more, and a bunch of junk the liquidation company brought in. High value stuff is usually shipped out to other stores leading up to the closure.
I could go to one of the open stores and buy most of what was being "discounted" for less money.
When one of the local Sears closed around here, it was pretty obvious they were about to close the store beforehand. Weeks leading up to the announcement the stock levels just dwindled down to about nothing. By the time the time of the liquidation "sale" it was just nothing but scraps marked up to full list or more, and a bunch of junk the liquidation company brought in. High value stuff is usually shipped out to other stores leading up to the closure.
I could go to one of the open stores and buy most of what was being "discounted" for less money.
EOC_Jason
Well-known member
I did not know that... That's real interesting because Lowes stocks a bunch of Irwin products, vice grips, clamps, drill bits, hand tools, etc, etc...
I honestly can't see one company keeping so many different brands & lines of production going, consolidating would save them money and allow less overlap of identical items (under different brands) in the stores...
tjpavlov
Well-known member
I went to my local Sears last night. The liquidation sale begins today.
As of yesterday, the tool department was really picked over. There were tons of empty pegs. The knipex stuff was all gone.
They were gathering all the staff as I left. It looks like they were going to be pulling off all the sales tags. Employees were buying the stuff that was on sale for themselves.
It was sad to see. I've bought a ton of stuff there over the last few years, but always when it was discounted.
As of yesterday, the tool department was really picked over. There were tons of empty pegs. The knipex stuff was all gone.
They were gathering all the staff as I left. It looks like they were going to be pulling off all the sales tags. Employees were buying the stuff that was on sale for themselves.
It was sad to see. I've bought a ton of stuff there over the last few years, but always when it was discounted.
Craftsman recently did what I believe to have been a test run for a Premium "Craftsman Industrial" all USA Made brand. Perhaps that was a move to show Stanley its potential as a premium brand.
Craftsman by far has the largest chunk of the mechanics tool set market, Stanley does not. Tried selling Dewalt branded socket sets in Sears stores a few years back which failed. Overall, good move for Stanley, got Craftsman Cheap, and no longer a competitor. Lots of potential Sears just did not have the time or money to focus on.
Craftsman by far has the largest chunk of the mechanics tool set market, Stanley does not. Tried selling Dewalt branded socket sets in Sears stores a few years back which failed. Overall, good move for Stanley, got Craftsman Cheap, and no longer a competitor. Lots of potential Sears just did not have the time or money to focus on.
pauls_workshop
Well-known member
Yes, and I'm hoping those Industrial and Professional lines grow strongly with SBD and stay made in USA. Proto versions or Mac versions cloned to be Craftsman Pro/Industrial would be just fine. Probably won't see Armstrong clones anymore though, but Proto is of similar quality (the US made stuff anyway). - Paul
pauls_workshop
Well-known member
Yes, I can't see that either. There will be consolidation for sure. Stanley for instance makes just about every tool Irwin makes. Those alone are going to consolidate. Craftsman for sure. How about Dewalt? For sure, much common with Irwin/Lennox/Craftsman. The loser here is mostly Apex, as I don't see them retaining production of much China COO Craftsman for long when SBD can do that with their own China suppliers and will. I'm not sure though on the deal clauses that Sears can still direct some Craftsman products for sale in Sears or for how long that applies. That is the only thing that will keep the C3 line made by Techtonic (Ryobi clones) going or the Apex/Gearwrench clones going for the China Craftsman hand tools (many of them anyway from Apex). If free to do so, the first thing SBD will do is elminate competitors from making any of the current Craftsman (or Irwin) tools and consolidate them under their existing suppliers. I do hope SBD will keep some of the good US makers of Craftsman tools still US, like Wilde and Western Forge, but we'll have to see. - Paul
southalabama
Well-known member
stopped by the liquidation sale for my hometown Sears store,
they marked prices up............then discounted, no deals........they price manipulating almost daily,
the employees are disgruntled and pissed off, they will warn you. all of the price tags are wrong, you have to check each price
they marked prices up............then discounted, no deals........they price manipulating almost daily,
the employees are disgruntled and pissed off, they will warn you. all of the price tags are wrong, you have to check each price
Ign
Well-known member
I wondered about this, too. It would seem they could change up part numbers a bit on things w high failure rates like RP ratchets, then say, sorry we no longer offer the 4332 (which is now the same or very similar product sold as 4333)
Ign
Well-known member
B&D loves gimmicks too. Didn't they offer that "slide to adjust" all-sixteenths (adjustable wrench)? And don't forget Bolt-On (was it Matrix?) which Cman also offered.
tjpavlov
Well-known member
Does anyone know who the OEM was for Craftsman Nextec? I have a set of those and really like them for light duty stuff. It's nice to have a lighter weight tool sometimes.
Alinnh
Well-known member
Stanley also owns Mac tools
ptgarcia
Well-known member
Got this in an email just now:
Dear Paul,
I'm writing to let you know some exciting news about Craftsman that will enable us to put even more hardworking tools in the hands of makers everywhere. On January 5, Sears Holdings announced that it will sell the Craftsman brand to Stanley Black & Decker.
Craftsman is and has been an important part of the Sears family for ninety years. And that’s not going to change. The research and development team at Sears and Craftsman will continue to develop new innovations that will be available exclusively at Sears and Kmart stores and online. However, as part of this transaction, Stanley Black & Decker will gain the rights to develop, manufacture and sell Craftsman-branded products outside of Sears and Kmart, which will make Craftsman products more broadly available in the USA and internationally.
Craftsman remains committed to maintaining the very best aspects of the Craftsman brand. You'll still find the most high quality tools available at the best value, along with our exclusive lifetime warranty on Craftsman hand tools, which has been a hallmark of the brand for generations.
Sears will continue to have the most extensive range of Craftsman tools and lawn and garden products, along with the same trusted service you rely on. In addition to being sold primarily at Sears and Kmart, Craftsman will soon be available at other retailers nationwide.
Your membership in Craftsman Club will not change and we will continue to provide you with exclusive offers, tips and information to help you with all your projects.
Thank you for your membership and loyalty to Craftsman. We look forward to supporting makers everywhere and providing you with the tools you need for many more years to come.
Sincerely,
Tom Park
President Kenmore, Craftsman, DieHard
Dear Paul,
I'm writing to let you know some exciting news about Craftsman that will enable us to put even more hardworking tools in the hands of makers everywhere. On January 5, Sears Holdings announced that it will sell the Craftsman brand to Stanley Black & Decker.
Craftsman is and has been an important part of the Sears family for ninety years. And that’s not going to change. The research and development team at Sears and Craftsman will continue to develop new innovations that will be available exclusively at Sears and Kmart stores and online. However, as part of this transaction, Stanley Black & Decker will gain the rights to develop, manufacture and sell Craftsman-branded products outside of Sears and Kmart, which will make Craftsman products more broadly available in the USA and internationally.
Craftsman remains committed to maintaining the very best aspects of the Craftsman brand. You'll still find the most high quality tools available at the best value, along with our exclusive lifetime warranty on Craftsman hand tools, which has been a hallmark of the brand for generations.
Sears will continue to have the most extensive range of Craftsman tools and lawn and garden products, along with the same trusted service you rely on. In addition to being sold primarily at Sears and Kmart, Craftsman will soon be available at other retailers nationwide.
Your membership in Craftsman Club will not change and we will continue to provide you with exclusive offers, tips and information to help you with all your projects.
Thank you for your membership and loyalty to Craftsman. We look forward to supporting makers everywhere and providing you with the tools you need for many more years to come.
Sincerely,
Tom Park
President Kenmore, Craftsman, DieHard
The provision of the deal that allows Sears to continue to develop and SOURCE Craftsman tools to be sold through Sears/K-Mart channels may create challenging friction for Stanley. They lose control over the branding and market positioning. For example, if Stanley does try to move Craftsman to a higher quality, more-US sourced, tool line, those efforts will be undermined when Sears continues to sell their exclusively sourced junk or newest gimmick, like an all-in-one micrometer/wood splitting wedge.
yamaha0343
Well-known member
I don't think Stanley will need to be concerned with what Sears stores do for much longer. By this time next year I doubt there's a Sears to talk about.
OP
Parrothead
Well-known member
I think that Stanley B&D is counting on the fact that they won't be around as a retail store very soon. The people running SB&D aren't stupid and their ability to evaluate a business in a retail environment is infinitely better than Eddie Lampert could ever dream. There's not a scenario I can envision where Sears makes it as a retail store, and I'm sure Stanley realized it too and is in fact counting on it.