- Ad Age, Monday, September 18, 2006 12 PM
Big-box home-improvement stores have eroded Sears' long-held dominance in appliance sales. Only six market-share points separate sales in the retail channel dominated by Lowe's, Home Depot and
department stores, almost entirely represented by Sears. Sears has reigned as the No. 1 appliance retailer in America since it first put the Kenmore brand on a washing machine in 1927. Lowe's, which
has been selling appliances nationally since 1994 and is the No. 2 retailer, had appliance revenue of $4.3 billion in 2005, compared to $6.9 billion at Sears. Home Depot, which did not sell a single
refrigerator, washing machine or dryer five years ago, is the No. 4 appliance retailer today. "Appliances are a bellwether for the future of Sears," says George Whalin, an analyst with Retail
Management Consultants, and what he sees is bleak. For starters, Sears is not opening new stores. Nor do customers think of it when they are remodeling their homes. Other challenges for Sears are the
glut of new competitors, like Bosch, LC and Samsung, and retaining margins as consumers regularly comparison-shop online for big-ticket items.
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