As Sears announced that it is laying off 130 headquarters employees, citing the continuing decline of its retail business, The Street writes that it also unveiled a new format store.
"With little fanfare," the story says, "Sears opened a full-service auto care facility called DieHard Auto Center Driven by Sears in San Antonio last week ... Similar to a Pep Boys, Sears' auto service stop provides oil changes, tire replacement and vehicle repairs and assessments. Unlike Sears Auto Centers, the Diehard Auto Center isn't attached to a Sears store or in a parking lot of one."
However, The Street suggests that this may be less about retail innovation than it is about highlighting an established brand that the company would like to sell. Sears burned through $1.6 billion in cash last year, analysts say, and while it stated its intention to sell its Craftsman, DieHard and Kenmore brands, it has only been able to sell Craftsman (to Black & Decker, for a total of $900 million).
"With little fanfare," the story says, "Sears opened a full-service auto care facility called DieHard Auto Center Driven by Sears in San Antonio last week ... Similar to a Pep Boys, Sears' auto service stop provides oil changes, tire replacement and vehicle repairs and assessments. Unlike Sears Auto Centers, the Diehard Auto Center isn't attached to a Sears store or in a parking lot of one."
However, The Street suggests that this may be less about retail innovation than it is about highlighting an established brand that the company would like to sell. Sears burned through $1.6 billion in cash last year, analysts say, and while it stated its intention to sell its Craftsman, DieHard and Kenmore brands, it has only been able to sell Craftsman (to Black & Decker, for a total of $900 million).
- KC's View:
-
I don't know that The Street is right about this last assertion ... it strikes me as a pretty expensive way to sell something. Simple denial seems like a far more likely rationale to me.
