Sears Holdings announced yesterday that it has embarked on a plan to franchise Sears Auto Centers. The company believes the time is right for this move with over 3,000 car dealers having lost their franchises of various auto makers over the past year.
The first company to sign on as a franchisee, Coleman Auto Group of East Windsor, New Jersey, is opening a Sears Auto Center in a space that formerly housed a Chrysler dealership.
The new franchises will offer the same products and services for cars and light trucks as the 850 company-operated Sears Auto Centers in operation today.
"For customers, Sears Auto Centers will be more convenient than ever, with more locations providing our full product and service offerings. This is also a great opportunity for dealers who are currently selling used cars to gain a brand that's nationally recognized for quality and dependability, a resource for buying high-quality auto parts and supplies, and access to a proven business model that has been tailored to their needs," said Bill Jackson, senior vice president of Sears Holdings Corp. and president of Sears Authorized Independent Auto Centers, in a press release.
"We're thrilled to join the Sears Auto Center network. No other opportunity combined so many features that we needed as we sought to stabilize our business and position it for future growth," said Bill Kendall, of Coleman Auto Group. "Already, we've witnessed the level of support and care that Sears has invested in our success. And we are ready to work hard to leverage the strengths that Sears brings to our existing relationships with customers."
Discussion Questions: Do Sears Auto Center franchises represent a win for Sears Holdings, franchisees and consumers?