Sears Holdings has been threatening since it took over Sears and Kmart that it would take the best exclusive brands of each format and sell them in the other.
Over that time, the parent company has slowly (some might say glacially) begun to introduce Kenmore appliances to Kmart stores. At the end of Sears' fiscal year 2005, 100 Kmart stores stocked Kenmore items. That number grew to 280 by the end of 2007.
Now the company has announced that it "will continue to explore opportunities to profitably cross-merchandise products and services" between Sears and Kmart.
The relative strength of the Kenmore business (Sears holds a 15 percent share of U.S. appliance sales), has given Sears Holdings confidence that the brand will perform well as it is rolled out to an even greater number of Kmart locations.
Sears' confidence in its appliance brand is further demonstrated by the company's plan to open more dealer stores over the next year. The company opened 40 new dealer stores in 2007 and currently has 857 operating in urban and rural locations around the country.
Discussion Questions: Has Sears Holdings been either too cautious or hasty in introducing Kenmore appliances into Kmart stores? What will putting Kenmore into more Kmart stores do for the appliance brand and Kmart's reputation and sales?