Craftsman comes to Costco

From a recent RetailWire discussion: The topic is Sears’s decision to sell Craftsman-branded tools to Costco. I view it as a “win-win” but continue to be skeptical about Sears’s’ long-term commitment to its physical stores:

On the surface, this looks like a big win for both Sears and Costco. It gives Sears a chance to continue leveraging its best brands (Kenmore and Craftsman) outside its own stores, and it gives Costco a very credible tool brand to sell in its stores, strengthening a category that needs better merchandise.

A couple of cautionary questions: Will Costco’s everyday-low pricing strategy undercut Sears’s ability to make margins on Craftsman products in its own stores? And how long does Sears intend to maintain the charade that it’s interested in bricks-and-mortar, anyway?

 

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