W. Frank Dell II, CMC

Sears to Franchise Auto Centers

February 19, 2010

FROM RETAILWIRE:
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. Do Sears Auto Center franchises represent a win for Sears Holdings, franchisees and consumers?      [more...]

Sears had a great brand image of trusted value for Middle America. The problem is, it is simply old.

Automobiles are far better built today and they last much longer. Additionally, their operation cost continues to go down. This means there is a smaller market for auto repair and service. As cars and trucks include more and more electronics, the ability to identify problems is more complex. This has increased dealer service, further limiting the market for Sears. Unless Sears uses the franchise fee to advertise and provide continual education and training, the results will be only marginally profitable.