Bill Bittner

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 makes sense from a lot of perspectives. Next thing Sears will do is make the Auto Centers "order online and pickup in-store" locations.

As more retail moves to the Internet, retail businesses need to do more to emphasize their customer service. You can't (yet) have your car serviced remotely. But by having a conveniently located Sears franchisee who builds brand consciousness with the consumer, Sears makes it clear they are in the business of providing service.

By adding the pickup and return services they make the local location a full scale retail outlet without the inventory costs and the real estate costs are subsidized by the service revenue.

Sounds like a winner.