Thoughts on Craftsman coming to Lowes

[Moparman390]

It's the same company that makes Ryobi & Craftsman cordless tools... Just the pins for the batteries are different styles. The more units they sell the more money they make, I don't see why they would want to shoot themselves in the foot cutting off part of their sales channels.

1. I don't think SBD is going to outsource any manufacturing of Craftsman power tools going forward to anybody. SBD's bread and butter is making power tools. I'm sure TTI is out as a Craftsman OEM just as soon as contractually possible.

2. HD owns the retail exclusives on the Ryobi and Ridgid power tools and is heavily invested in marketing them, there is no way they want Craftsman in their stores competing against them.

 

[Rickster]

It would seem Lowes is at a crossroad. Take on the Cman tool line as-is and compete pricewise with everyone else's China tools or offer Cman USA tools as an upgrade for the masses. I have a lot of Cman in my toolbox but I can't pay snap-on prices for Cman USA.

 

[Moparman390]

It would seem Lowes is at a crossroad. Take on the Cman tool line as-is and compete pricewise with everyone else's China tools or offer Cman USA tools as an upgrade for the masses. I have a lot of Cman in my toolbox but I can't pay snap-on prices for Cman USA.

They won't charge that much, they already said they are going to have to accept lower margins for a while, so it will probably be something like 1.5x Kolbat would be my guess.

 

[derosa]

personally, I think it's too late.

The craftsman addicts will be bitching either about high-priced Chinese made tools, or, way higher priced American made tools, that don't have the quality and feel, as they did in 1967.

Everyone else, will have already moved on.

I hope I am wrong.

Sent from my iPhone using Tapatalk

I think to some extent you will be wrong. There is always those who know that you get what you pay for even if they don't realize what should be paid. They will pay a small premium for it to say craftsman cause that's what grandpa used or because they've heard of the brand and it still says USA on it. There will be those who won't care what it says they just want the cheapest and most of them won't be shopping the Lowes to begin with. I don't think they can rebadge proto and expect the same pricing but craftsman was always meant to be a lower priced, decent quality (not great, exceptional, or amazing as some would believe) that worked for the handy homeowner and driveway mechanic. Stanley shouldn't have too hard filling that role and people will buy it, and there is still a core group that will go to Lowes just to buy US made Lowes and these threads point out just how hopeful they can be.

 

[RAS61]

The real question is why bring in Craftsman at all? It may have a better name recognition than Kobalt, but it's still a damaged brand after years of cutting corners. Why doesn't Lowes bring in Williams, Armstrong, Tekton, etc instead?

 

[yjWrangler]

but it's still a damaged brand after years of cutting corners

Damaged to you? Maybe. Damaged to Joe Schmo? Not so much

 

[kctyphoon]

It's quite possible that Lowes could drop "Kobalt" like a hot potato without notice.
Craftsman still has, and will continue to have far better brand recognition than what "Kobalt" has or will have at any foreseeable point in the future.
Regardless of where it is sourced from, whether that's the USA or China or Outer Mongolia, retail buyers will still perceive Craftsman as a high-quality product; the majority of consumers at Lowes are most likely not GarageJournal members.

Over the long term, if Lowes and SBD have negotiated some sort of contractual agreement that gives Lowes an edge over other mass-merchandiser retailers from the outset, it would be to Lowes' advantage to jump in with both feet.

It would also be to SBD's advantage to get the product line into a mass-merchandiser retailer where they can make a decent profit margin (as opposed to giving away the store to get it into Walmart) and establish a long-term relationship that will expedite the recovery of their enormous investment in buying the Craftsman name.

Just my lousy opinion, but I would say you might see some serious clearance sales of "Kobalt" products in the near future.

Would never happen in my eyes.. why get a small percentage of what some else has manufactured when you can have then manufactured yourself.. goes right back to my disbelief that lowes will be willing designate any REAL sales space to craftsman.. craftsman will not overtake their house brand.. if that's what lowes wanted, they'd likely buy the name themselves..

 

[Big Bad Dad]

See how well the Craftsman warranty works at Lowes when you break one tool out of a set. Lowes will want you to bring in the entire set along with the original purchase receipt. Hows THAT going to work on a 10 year old tool? "Rotsa Ruck"

(I have experienced that on another product at Lowes....)

 

[xin]

See how well the Craftsman warranty works at Lowes when you break one tool out of a set. Lowes will want you to bring in the entire set along with the original purchase receipt. Hows THAT going to work on a 10 year old tool? "Rotsa Ruck"

(I have experienced that on another product at Lowes....)

I think the same is for the other big box stores (SEARS) was unique where it was not that way. Sears could have remained competitive as it was not a discount flea market. In the end they turned Sears into a shelves empty flea market and milked it for everything they had.

Craftsman was a sign of quality and not some throw away JUNK.

 

[sberry]

Sears and Cman prices are not an issue, HF isn't that much cheaper but all this stuff is generic, run of the mill stuff. Cman isn't robbing anyone, they are not that expensive and super cheap in sale sets.

 

[bcexplorer]

From another viewpoint, every tool for sale in Canada is “Harbour Freight” quality, unless its from a tool truck or online. Hit and miss at best. Husky handtools are far lower quality than princess auto (which is our harbour freight ). Canadian tire mastercraft used to be highly respected but has gone scarily downhill. Napa isnt bad really, we dont get carlysle tho, although some may be the same. Craftsman went offshore long ago here, while it was still USA down south. If we got the same craftsman as the states, AND it was made in USA, I think it would be a big hit up here. It couldnt be worse than what we have already.

 

[xin]

From another viewpoint, every tool for sale in Canada is “Harbour Freight” quality, unless its from a tool truck or online. Hit and miss at best. Husky handtools are far lower quality than princess auto (which is our harbour freight ). Canadian tire mastercraft used to be highly respected but has gone scarily downhill. Napa isnt bad really, we dont get carlysle tho, although some may be the same. Craftsman went offshore long ago here, while it was still USA down south. If we got the same craftsman as the states, AND it was made in USA, I think it would be a big hit up here. It couldnt be worse than what we have already.

It sure seems like there is a race to the bottom, hopefully Craftsman will return to the USA and gain back the respect they lost.

 

[zendriver]

I think to some extent you will be wrong. There is always those who know that you get what you pay for even if they don't realize what should be paid. They will pay a small premium for it to say craftsman cause that's what grandpa used or because they've heard of the brand and it still says USA on it. There will be those who won't care what it says they just want the cheapest and most of them won't be shopping the Lowes to begin with. I don't think they can rebadge proto and expect the same pricing but craftsman was always meant to be a lower priced, decent quality (not great, exceptional, or amazing as some would believe) that worked for the handy homeowner and driveway mechanic. Stanley shouldn't have too hard filling that role and people will buy it, and there is still a core group that will go to Lowes just to buy US made Lowes and these threads point out just how hopeful they can be.

I won't argue with your points, but I will, that from the sounds of them, they hardly add to a renewed recipe for success, for the brand.

Oh well, they will say "Craftsman" on them.

 

[Fialaja]

Let’s just hope that made in USA isn’t like it was for Stanley when they got sued for falsely claiming they were “made in USA “����

 

[Moparman390]

I can totally see why Lowes is in on SBD Craftsman.

First: HD is heavily invested in TTI and Husky. HD has tons of Ryobi (TTI HD exclusive), Ridgid (TTI HD exclusive) and Milwaukee (TTI), as well as the majority of hand tool shelf space going to Husky (HD exclusive). HD doesn't seem to like SBD all that much. HD has totally or virtually eliminated the SBD brands of B&D, PC, Bostitch, Irwin, and Lenox. HD only carries an ok selection of Dewalt (because pros demand it) and Stanley (mostly in tape measures because they are highly regarded, especially Fat Max), a few other things and that's it. HD is highly dedicated to TTI/Husky as they have done a very good job building up most of those brands. One can see why they want to shut SBD Craftsman out.

Lowes on the other hand is practically an SBD house. Lowes carries full lines of SBD's B&D, PC, and Dewalt with lots of Irwin, and Stanley, even some Bostitch, they carry a Lenox tool chest for crying out loud. Lowes doesn't have much ground to protect on Kolbalt either. Kobalt does ok on the hand tool front, but nothing special (brand wise), and Kobalt power tools (their only house brand power tools) are a joke (brand and sales wise) compared to Ridgid and Ryobi.

SBD moving lots of Craftsman in to Lowes seems like a natural fit, especially seeing their tight relationship with SBD and their weakness on the store brands front.

Edit: Forgot to add HD has lots of Emipre and Hart, both TTI.

 

[BDT/NWMN]

It is an embarrassment to be seen in the Lowes tool department the way it is; so dumping Craftsman stuff there will double the reason to avoid Lowes.

 

[Velosprout]

Very disappointed. I gave away all of my Craftsman & assorted generic tools to a nephew & have been replacing everything with Kobalt. I will not buy Craftsman again; hopefully the new Craftsman will just replace the lower end Stanley & Blue Hawk. I wrote a complaint to Lowe's corporate the day it was announced.


Sent from my iPhone using Tapatalk

 

[ER70S-2]

I don't care. Craftsman is junk now, so I wouldn't buy it no matter where it was being sold or for how much.

 

[Velosprout]

The real question is why bring in Craftsman at all? It may have a better name recognition than Kobalt, but it's still a damaged brand after years of cutting corners. Why doesn't Lowes bring in Williams, Armstrong, Tekton, etc instead?

Agreed. Let Craftsman die along with the Weatherbeater, Coldspot, Kenmore, JC Higgins, Everest, David Bradley, & Roebucks brands Sears used to use.


Sent from my iPhone using Tapatalk

 

[four.cycle]

"...they'd likely buy the name themselves..."

Lowes is a mass-merchandiser retailer.
Buying the Craftsman brand would put them in a position of being something of a manufacturer - a whole different can of worms.

 

[apollo11]

I just hope they update the C3 line

 

[nbruno]

The bottom line is this: Lowes isn't going to be selling tool truck quality tools no matter what happens. CM is not going to resurrect itself as a top shelf tool brand, it never was and never will be. The benefit for Lowes is brand recognition for the Harry Homeowner and CM certainly has that. Whether or not the CM brand has become junk over the years or not your average Joe who has a hammer, tape measure and a socket set isn't looking for Snap-on tools and isn't willing to pay those prices so when they hear that they can upgrade their 8x16" plastic toolbox they'll be thrilled. It's a win/win for Lowes and SBD.

Sent from my SM-G930V using Tapatalk

 

[unslow1]

I bet the Christmas sales alone will make Lowe's a lot of money. When you ask the average person the only brand they've ever heard of is Craftsman.

 

[unslow1]

The real question is why bring in Craftsman at all? It may have a better name recognition than Kobalt, but it's still a damaged brand after years of cutting corners. Why doesn't Lowes bring in Williams, Armstrong, Tekton, etc instead?

The average housewife or sister will always buy them for guys because of that name recognition. They have never even heard of those other brands. That's why Craftsman costs more a a yard sale or the average pawn shop. It's not uncommon to see Cornwell or MAC tools for half of the price on a Craftsman. Great for us but guess what is going to get bought for most of the population?

 

[dnschmidt]

Yahn. Who cares?

 

[Finance Guy]

I never cease to be amazed at just how boldly people speak/post about topics of which they are rather ignorant.

We don’t know the answers to all of the questions, but we do know the answers to some.

1) SBD bought Craftsman with the intention to “re-Americanize” the brand (their word, not mine). This is what they have told their institutional investors who own the preponderance of their stock.

2) The initial roll out will incorporate a “sourcing model” … over the next “year or two” they expect to ramp up their internal manufacturing capacity.

3) SBD intends to spend $45 million adding capacity at their existing factories.

4) SBD intends to spend $35 million building a “flagship” factory for Craftsman … this is expected to be up in running in 2020 … there could be a second factory afterwards.

5) Lowe’s sought a deal with Craftsman … their comments suggest they may (?) have negotiated an exclusive for home improvement stores (this is not confirmed).

6) Lowe’s felt the contract was significant enough that it warranted a material disclosure statement. As a result, SBD likewise had to disclose the deal … SBD wanted to hold off until it was prepared to announce its broader roll out.
Opinion: As such, I do not think Lowe’s is intending to include Craftsman products on one or two shelves.

7) SBD has stated rather emphatically that they intend to honor the Craftsman warranty (even though the purchase did not include any legal obligation to do so).

8) SBD will announce 4th quarter earnings in two weeks, where we will get another update.

 

[Parrothead]

I never cease to be amazed at just how boldly people speak/post about topics of which they are rather ignorant.

We don’t know the answers to all of the questions, but we do know the answers to some.

Spot on!!! Thank you!!!

 

[Moparman390]

Right on guys. Everything I have speculated on has been based on the facts laid out by SBD and Lowes as well as Craftsman's position in the marketplace. What we see on the shelves at both retailers and who makes what guides my speculation. My speculation is just that, speculation, but its based on sound logic, we will see what happens in the future.

 

[apollo11]

Yahn. Who cares?

who is Yahn?

 

[zendriver]

The hardest thing to understand, if people like Craftsman product so much, why didn't they just go to Sears and buy them? Their December 2017 sales were in the *******.

If it's the obsession over American-made wrenches, are they going to boycott Lowe's for two years until their American factories are up and running?

What about everything else they sell Chinese under the craftsman brand? Vacuums, compressors, cordless tools dozens of other products.

This just seems to be getting bizarre





Sent from my iPhone using Tapatalk

 

[ezriderga]

who is Yahn?

I was going to ask the same question and you beat me to it. lol

 

[PFSard]

I never cease to be amazed at just how boldly people speak/post about topics of which they are rather ignorant.

Well written analysis. Time will tell how this all plays out, of course. Did Sears break out to the public in their financial statements the profit margins from the Craftsman brand?

 

[Finance Guy]

Did Sears break out to the public in their financial statements the profit margins from the Craftsman brand?

Unfortunately, but not surprisingly, no. And because of the way the sale was structured, SBD's filings do not offer any insight either.

 

[four.cycle]

Well written analysis

^ indeed.

 

[jcthorne]

See how well the Craftsman warranty works at Lowes when you break one tool out of a set. Lowes will want you to bring in the entire set along with the original purchase receipt. Hows THAT going to work on a 10 year old tool? "Rotsa Ruck"

(I have experienced that on another product at Lowes....)

When a store like Lowes plays games like that to weasel out of honoring a legit warranty claim, I have no problem buying a replacement set and then returning it with the broken tool in it for a refund. I can play games too. Rather not but will not be taken advantage of by a retailer like that.

 

[jacked_72]

My thought is that based on all the issues I've had with lowes, I'd rather buy a different brand from a different store.

 

[apollo11]

When a store like Lowes plays games like that to weasel out of honoring a legit warranty claim, I have no problem buying a replacement set and then returning it with the broken tool in it for a refund. I can play games too. Rather not but will not be taken advantage of by a retailer like that.

Been there, done that

 

[nbruno]

I never cease to be amazed at just how boldly people speak/post about topics of which they are rather ignorant.

We don’t know the answers to all of the questions, but we do know the answers to some.

1) SBD bought Craftsman with the intention to “re-Americanize” the brand (their word, not mine). This is what they have told their institutional investors who own the preponderance of their stock.

2) The initial roll out will incorporate a “sourcing model” … over the next “year or two” they expect to ramp up their internal manufacturing capacity.

3) SBD intends to spend $45 million adding capacity at their existing factories.

4) SBD intends to spend $35 million building a “flagship” factory for Craftsman … this is expected to be up in running in 2020 … there could be a second factory afterwards.

5) Lowe’s sought a deal with Craftsman … their comments suggest they may (?) have negotiated an exclusive for home improvement stores (this is not confirmed).

6) Lowe’s felt the contract was significant enough that it warranted a material disclosure statement. As a result, SBD likewise had to disclose the deal … SBD wanted to hold off until it was prepared to announce its broader roll out.
Opinion: As such, I do not think Lowe’s is intending to include Craftsman products on one or two shelves.

7) SBD has stated rather emphatically that they intend to honor the Craftsman warranty (even though the purchase did not include any legal obligation to do so).

8) SBD will announce 4th quarter earnings in two weeks, where we will get another update.

Very eloquent post Finance Guy, very thought provoking and accurate.
However, the problem is not whether or not Lowes is going to make CM great again and how they are or are not going to do it. CM was never great to begin with. They produced middle of the road tools tailored toward the average homeowner. Yes their pro line was significantly better grade but still not to the quality of or design of the top of the line tools.
I do hope that CM is resurrected to its heyday status but it still will be a middle of the road tool.

Sent from my SM-G930V using Tapatalk

 

[VH5150]

Everyone seems to have an opinion on this topic - no matter if it's good or bad - because the Craftsman story is a polarizing one. It's what all of us grew up on and was as American as apple pie. How many of us have memories growing up strolling through Sears looking at Craftsman gear with parents and grandparents? I certainly do. I for one am excited about the prospect of Craftsman becoming more available - and definitely excited at the possibility of the brand becoming more "Americanized." And I could care less if it isn't a Premium or Pro line of tools. I'm one of those Harry Homeowners that mid-grade tools work just fine for.

 

[tjpavlov]

It will be interesting what they do with the cordless tool platforms.