THE END OF AN ERA IN APPLIANCES: WHIRLPOOL ENDS ITS 101 YEAR RELATIONSHIP WITH SEARS
Late in October it was announced that the Whirlpool corporation would be terminating its longstanding partnership with Sears. Very soon, as the current inventory is depleted, you will no longer be able to purchase Whirlpool, Amana, Maytag, KitchenAid and Jenn-Air appliances from Sears. What does this mean for consumers and, perhaps more importantly, what does this mean for Sears? What happened in retail to make this happen? Where should customers shop for appliances?
WHAT IT MEANS: FEWER CHOICES FOR SEARS CUSTOMERS, FEWER CUSTOMERS FOR SEARS
The Whirlpool Corporation, and its signature brands (Amana, Whirlpool, Maytag, KitchenAid and Jenn-Air) account for 40% of the American appliance market. Whirlpool is the number one appliance brand in America. The loss of these brands has essentially cut their selection in half and severely limited Sears ability to compete with big box stores and, more surprisingly, with independent retailers. Simply put, if you shop at Sears, you now have fewer options to choose from. If you are Sears, your customers now have one less reason to shop at your stores.
WHAT CHANGED IN THE RETAIL LANDSCAPE TO CAUSE THIS?
I started my appliance career 13 years ago at Sears, so I take no joy in outlining their decline and, in my opinion, their inevitable departure from the American retail landscape. As recently as 2002, 40% of Americans bought their appliances at Sears. There was a simple reason for this: Sears offered the largest selection of products at competitive prices and provided customer service better than any other large chain store. During my 8 years of working for Sears the single biggest change I witnessed was the decline of quality in every aspect of their customer service. From sales, delivery, service and customer support, Sears had adopted the same customer service model as the big box stores and in many cases, performed poorly for their customers.
Where once they had knowledgeable and helpful sales people and prompt and courteous local customer service, Sears slowly shifted to call centers around the globe, servicing more and more customers via 800 numbers with agents ill equipped to handle customer's issues. As a sales person it became so frustrating that I asked all my customers to contact me personally and not call Sears 1-800-4-MYHOME number. I would then call service centers numbers that only sales people and managers had access to (regional centers staffed by more knowledgeable people who could actually fix problems). This was extremely time consuming, but it prevented my customers from experiencing the frustration other customers felt. Sears had lost touch with their customer. By pursuing profits by trying to save money outsourcing, they lost the very thing people came to Sears for: competent, courteous and knowledgeable help.
You could also see it on the sales floor. When I first started at Sears I worked with dedicated professionals who had 30-35 years of experience working exclusively for Sears. Most retired early as their paychecks kept shrinking. Eight years later, I left as being the most senior person working primarily with part-time employees (college students, retirees and even a few musicians). Gone for the most part was the knowledge and help people had relied upon for generations at Sears. Think about it: why would you go to a store that didn't offer better service, helpful sales people and pay the exact same price that other newer, cleaner and closer stores provide?
In the span of 15 years later, Sears has gone from a 40% market share to a 13.2% market share. Very soon, perhaps before the end of the year, Sears will be the fourth largest retailer of appliances behind Lowes, Home Depot and Best Buy. In a way, it's a sad testament to a once respected retail giant.
SO WHERE ARE CUSTOMERS SHOPPING FOR APPLIANCES?
You can still find the quality service and support that was once the norm in American retail. It may have disappeared at the big box stores and giant retailers, but it never truly left the smaller, local independent retailers like Don’s Appliances.
There has been a growing resurgence in shopping local and supporting local businesses. In the case of appliances this is easy to see why. Smaller companies are most focused on providing the knowledge, help and services that big companies simply cannot provide. This is the experience you will have at each and every Don’s Appliances showroom. While I consider myself blessed for having the opportunity to work for such a good company, we aren't entirely unique. If you look around the country, there is a growing number of increasingly successful family-owned and family-run appliance retailers competing and even beating the big box stores.
I have the opportunity to travel for business training to meet with companies much like Don's. What I notice each year I meet with these people is that they are opening new stores. I personally have helped open 2 Don's Appliances stores in less than 3 years. Why are we and others succeeding? We are providing the very thing you cannot ever get from big retail chains. Friendly, personable and knowledgeable help, courteous and competent service with our own team of delivery and service professionals, prices as good as or better than the big box stores and yes, in addition to our other fine brands, we sell Whirlpool, Maytag, Amana, KitchenAid and Jenn-Air.