Eddie Lampert, CEO and chairman of Sears Holdings, earlier this month offered (in his capacity as a hedge fund manager) more than $400 million for the Kenmore appliance brand, one of Sears' last remaining valuable assets. Last year Sears sold its Craftsman tool brand to Stanley Black & Decker.
Lowe's, which is in better shape than Sears—the home improvement retailer reported a 7.1% increase in Q2 2018 sales to $20.9 billion—has decided to close all 99 Orchard Supply Hardware stores in California, Oregon and Florida by the end of 2018. Lowe's bought the smaller customer service-focused business (once owned by Sears Holdings) in 2013.
However, the retailer expects to open nine Lowe's stores by the end of the year.
Lowe's has long played second fiddle to The Home Depot. The company posted $68.62 billion in revenues for the latest fiscal year, but its competitor pulled in $100.90 billion, according to the eMarketer Retail Database. This is partially due to Lowe's target DIY customer, whereas The Home Depot has courted professional contractors who spend more.
Lowe's president and CEO Marvin Ellison also called out multiple areas where the company has "work to do," including supply chain strategy, in-store technology and problems with out-of-stocks.
Interestingly, Lowe's said being the exclusive big-box home improvement channel for Craftsman has paid off. "We drove market share gains across all major categories where we introduced Craftsman to our lineup," chief customer officer Mike McDermott said during the company's Q2 earnings call.