Sears Brand Management Corporation announced it has reached a licensing agreement with Schumacher Electric Corporation allowing it to sell DieHard brand power accessories, including battery chargers, jump starters and power inverters, to retailers in the U.S., Puerto Rico and Mexico.
"DieHard is the top selling brand of power accessories in the U.S.," said Guenther Trieb, senior vice president and president of brands for Sears Brand Management Corporation, in a press release. "We're excited that this agreement will allow our customers the opportunity to purchase DieHard power accessories at additional retail outlets."
Don Schumacher, CEO of Schumacher Electric, added, "The DieHard name is the most trusted in the automotive battery industry, and the brand is instantly recognized by millions of consumers. Through this license agreement, we look forward to expanding the reach of the DieHard brand and the availability of DieHard products through retail channels."
The decision to allow DieHard products to be sold in other retailers is consistent with statements made in January 2008 when Sears Holdings announced it was reorganizing its business into independent operating units.
"We are introducing an organizational structure that provides operating businesses with greater control, authority and autonomy. Each operating business unit will have a designated leader and an advisory group comprised of senior Sears Holdings executives to provide direction and oversee the business unit's performance," said a company statement.
Discussion Questions: What will the DieHard licensing agreement mean for the brand? What will it mean for the Sears and Kmart stores that presently sell DieHard products?