Sandy Miller

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...]

This is an excellent idea. Most (not all) successful retailers are broadening their offering. Auto Dealerships have one important advantage--when shoppers visit their stores for auto products, they generally drop in to see the cars/trucks. There is an issue--Sears buys direct; when they resell to retailers, retailers will find it difficult to be competitive.