Sears has revealed that it has entered into a deal which will see DieHard batteries brand and Kenmore home appliances being licensed for distribution in markets outside its domestic territory of the United States. The deal coincides with moves by the retailer to shut down some of its stores after years of falling sales following increased competition from Amazon and Walmart.
“Both of these agreements are examples of our expansion strategy to unleash the power of these iconic brands internationally. We will have direct and active involvement in building the business with our licensing partners,” said Sears Holdings’ president for DieHard, Craftsman and Kenmore brands, Tom Park, in a statement.
The manufacturing and distribution of Kenmore products which include sweepers, carpet cleaners and vacuum cleaners will be done by Cleva North America. Some of the brands that Cleva makes include LawnMaster power tools and mowers, Armor All vacuums and Vacmaster.
Dorcy International will, on the other hand, manufacture and distribute the DieHard brand of batteries. As a maker of lighting products, Dorcy International already manufactures batteries and flashlights under the DieHard brand so the agreement will extend the range of DieHard products it manufactures as well as the places these products can be sold. Some of the envisaged new markets for the DieHard brand include Latin America, the Caribbean, Puerto Rico as well as South Pacific countries.
Recently Sears entered into a deal with Amazon to have its Kenmore home appliances sold on the online store. Additionally the deal will see Kenmore smart gadgets integrated with Amazon’s digital assistant, Alexa. Executives of Dorcy International and Cleva North America also hinted that they intended to invest in the development of new products bearing the DieHard and Kenmore brand names.
For over a year, Sears Holdings had been seeking ways in which it can generate more revenues from its brands. Earlier in the year the retailer entered an agreement to sell to Stanley Black & Decker its Craftsman tools brand at a price of $900 million. Sears also entered into an agreement with Permasteel allowing it to produce Kenmore grills and distribute them to retailers all over the United States.
Previously most of the products bearing the Kenmore brand name were only sold in outlets belonging to Sears but last month this began changing when these appliances were made available on Amazon. And earlier this month Sears made 61 more of its products available on the online retail giant.