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ToolGuyd > Editorial > Craftsman to Split from Sears as a Spinoff?

Craftsman to Split from Sears as a Spinoff?

Mar 3, 2010 Stuart 10 Comments

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There’s definitely something strange going on between Sears and their Craftsman brand, and I have a feeling that it goes way beyond the recent agreement to sell Craftsman tools at Ace Hardware. Just take a look at the cover of Sears’ 2010-2011 tool catalog – Craftsman tools are missing!

It used to be that all tool catalogs from Sears were Craftsman Hand & Power Tool Catalogs, with the 2008-2009 edition being the last of its kind. Recently, as you can see with Sears’ 2009 holiday tool catalog, the Craftsman catalogs became Sears Tool Catalogs, featuring Craftsman.

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As you can see, the cover of the 2010-2011 tool catalog highlights Sears as being America’s Tool Headquarters, with some emphasis placed on the Sears Blue Tool Crew. There’s no mention of Craftsman at all! Sure, there are several Craftsman hand tools on the cover, but they’re among tools from approximately 16 other tool brands!

Let’s take a look at the evidence.

First, Sears launched a standalone Craftsman website with a linked online store. At the time, I noticed a distinction between the Craftsman brand, and the Sears Blue Tool Crew.

Next, we spotted Craftsman tools at Amazon.com. While Craftsman tools have been available at industrial distributors for a while, this was the first time we’ve ever seen a wide selection of Craftsman products available at retail outlets outside of Sears.

And now? Sears and Ace Hardware launched a trial program where select Ace stores can carry Craftsman products, with all Ace stores being offered the opportunity to carry a limited selection as part of an upcoming Father’s Day event in June.

Then, there are these new tool catalogs, where it looks like Sears is intentionally trying to distance themselves from and minimize their association with Craftsman.

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What is all this leading up to? Personally, I think that some sort of standalone Craftsman spinoff is inevitable. Maybe I’m wrong, but you have to admit – there is most definitely something in motion to have prompted this!

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10 Comments

  1. IndyEngineer

    Mar 3, 2010

    I have to agree with you Stuart. Over the years, Sears has taken a large part of my tool budget. Because of that, I have spent a lot of time looking at their catalogs, websites, and even at the store. I have been seeing the same trend that you have. Have you noticed that Sears brick stores don’t carry near as many different kinds of Craftsman tools as they used too? Over half of Craftsman tools can only be bought through the Sears website or through their catalog. I’m in Indianapolis and most of the Sears stores don’t even carry Craftsman Mechanics Tool Sets that are larger than 300 pieces. I have also noticed that I always get a better deal on Craftsman tools if I order them through the Sears website.
    Something definitely is changing with Craftsman brand tools at Sears. To be honest, I don’t know if i am going to like Craftsman being available at many different sources. I’m afraid that they will start making more and more tools in China to keep prices low. The last batch of new style Craftsman wrench sets that came out are all made in China. It all has me worried.

    Reply
  2. Stephenw

    Mar 3, 2010

    Maybe they are about to announce Craftsman tool trucks. I have an extensive collection of Craftsman hand tools. They have always been an exceptional value for a U.S.A. made hand tool. I hope whatever they have planned will increase quality, selection, availability, and that they will continue to be made in the U.S.A.

    Reply
  3. Stuart

    Mar 3, 2010

    IndyEngineer, it does look as though Sears retail stores have gradually cut back on their in-store Craftsman tool selection, and now only stock the most commonly purchased tools and sets. However, this is not necessarily a bad thing. Yes, it’s bad if you need a specialty tool ASAP, but on the other hand it ensures better pricing for consumers.

    I’m told that mailable items are shipped for free if an associate helps you order them from an in-store kiosk. This requires waiting a few days for an order, but is a decent alternative for when time isn’t an issue. For urgently needed tools, there are sometimes better alternatives, such as industrial suppliers.

    Stephen, I’ve noticed that in the past two catalogs, for the Craftsman warranty information , it says that Craftsman hand tools can be returned to any Craftsman tool outlet. Previous Craftsman catalogs explicitly say to bring those tools to any Sears store. This may not mean anything, but it may suggest that either the Sears-Ace partnership has been in the making for a while, or that it is only the first such arrangement.

    As for the new Craftsman tools that are made in China, that’s a rant/editorial for another time. I tried to address the issue in this reply comment, but it got out of hand fast and threw things in an entirely new direction. We’re soon taking a hands-on look at the new [non-USA-made] Craftsman ratcheting wrenches, so you can expect some commentary about the issue at that time.

    Reply
  4. teicher

    Mar 3, 2010

    No conspiracy theory at all, it’s pretty clear that Craftsman is being positioned to go it alone if needed. I got the same catalog yesterday and the things that really jumped out:

    1. Only part of the craftsman lineup was offered. For example, notice how the craftsman pro compressors are missing? How about that super useful 2 gallon wet/dry vac?

    2. Craftsman branding has been minimized, but the Sears Blue Tools crew brand is all over the place. This definitely suggests that Sears wants to emphasize Sears and tools in general, not just Craftsman tools that can be found at Sears.

    3. There are tons more tools from other vendors.

    I wouldn’t be surprised if I get a more complete Craftsman catalog later this year, with minimal Sears branding and all of the Craftsman lineup. As for the Craftsman tools made in China, I think we will see a lot more of them coming under the new, standalone Craftsman brand, at the expense of the Made in USA. I think the black, universal combo wrenches they just released are but the first of many hand tools to be made in China (or elsewhere), yet carry the normal, forever Craftsman warranty.

    Reply
  5. Stuart

    Mar 3, 2010

    I did notice that the catalog omitted quite a few Craftsman and Craftsman Pro tools. It is possible that there will soon be a “Pro” catalog shipped to certain customers. In any case, last year’s catalog did away with the descriptions of loose wrench and socket sizes. They’re still included in an online full-line catalog, but that won’t be as useful as having a physical paper catalog.

    If we do get a new catalog that emphasizes Craftsman with minimal Sears or Sears Blue Tool Crew mention, that will probably be the final red flag before Sears and Craftsman make their move.

    Reply
  6. Andy

    Mar 3, 2010

    My understanding is that Craftsman is a brand name owned by Sears. Just like Kenmore is the brand for their appliances. Craftsman isn’t a stand-alone tool business like S-K or Klein.

    If I’m right, the decision to distribute Craftsman tools beyond Sears’ own channels must be a Sears decision. Ditto for the decision to de-emphasize Craftsman in their retaill outlets.

    A justification for this decision may be that Craftsman is the only Sears brand that has any equity outside a Sears store. The brand may be worth more to Sears and its suppliers in other channels than it is just within Sears. Especially if Sears is upside-down with some of their suppliers. I can imagine somebody like Danaher pushing this because Sears hasn’t delivered the volume they were expecting and doesn’t look likely to do so in the future.

    I wonder how Craftsman tools have been distributed to the industrial channel and how they will be distributed to Ace. Do/will the orders go through Sears? Or will the manufacturers of Craftsman tools use the name as another one of their own brands?

    Reply
  7. Stuart

    Mar 3, 2010

    Andy, you are correct, Craftsman is a Sears brand. My suspicion is that this might be changing. Sears is definitely maneuvering the Craftsman brand in a new direction, and to me their partnership with Ace looks to be an intermediate step, and not the final objective.

    I’m not sure how they’re distributed through industrial channels, but I imagine that Ace stores will receive shipments from Craftsman/Sears warehouses. Ace already has affiliation with many Craftsman OEMs; the point of the partnership is to promote the Craftsman brand outside of Sears. I imagine that if distribution were OEM-direct and not through Craftsman/Sears, the logistics will be a nightmare for Ace Hardware store owners.

    Reply
  8. PutnamEco

    Mar 3, 2010

    Craftsman is technically produced by KCD IP, LLC (Kenmore Craftsman DieHard Intellectual Property, Limited Liability Company) which is part of Sears Holdings Corporation, which is why you see Craftsman tools in Kmart and Orchard Supply Hardware. I think you guys are reading a lot more into this than what is essentially just a little repositioning with some changes to marketing strategies to increase market share. A corporation cannot really grow, if it always does what it always did.

    Reply
  9. uthscsaedu

    Mar 4, 2010

    I got my catalog in the mail today. I agree Craftsman is not as prominently featured, but it wasn’t as bad as I thought it was going to be. The majority of tools on the cover are still Craftsman. IMHO the most interesting piece on the cover is the Montezuma crossover box. I don’t know what to say about the “conspiracy.” Only time will tell I guess.

    Reply
  10. IndyEngineer

    Mar 5, 2010

    I would still like to see a catalog the features only Craftsman brand tools. It’s not that I object to change, I just like things simple.

    Reply

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