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.