Comments for Home Appliances leadership

1: Rumor of Frigidaire taking over Kenmore top-load laundry. True?

2: Sears Canada has Samsung making some Kenmore front-load machines. Sears America will have LG doing Kenmore front-load from all indications. While Samsung was chosen for expediency's sake at the time, is there a reason (other than offering steam/non-steam versions) for choosing LG over Samsung for Kenmore's front-load machines? Considering Samsung's strong sales performance (black Friday set notwithstanding), machine cosmetics more in line with traditional Kenmore cosmetics, steam dryer system using cold water rather than steam generator (fewer parts to fail), and feature sets at more customer-friendly price points, Samsung would seem the more attractive alternative to Whirlpool. Have there been negative experiences between Samsung and Sears Canada that made Samsung less attractive?

3: Is LG taking over the rest of Kenmore top-mount and side-by-side refrigeration, and is LG taking over the remaining bottom-mount slots currently held by Whirlpool?

4: Is LG in the process of becoming the sole OEM for Kenmore refrigerators?

5: Thanks to the Kenmore/Whirlpool top-load department for adjusting the behavior of the load sensor on the 800 models. Will this change be reflected in the equivalent Maytag/Whirlpool E-Star top-loads?

6: Rumor that Bosch is introducing stackable washer and dryer in full-size category. True or false?

7: Technically a small kitchen appliance question, but with Deni's induction hotplate, is there any plan for a Kenmore induction hotplate?

8: Hot Buy Kenmore OasisHT/ST sets are pretty well despite current economic conditions. Are Oasis models going to continue after Whirlpool no longer makes Kenmore front-load washers, or are all HE Kenmore laundry going to be non-Whirlpool?

9: Are there any plans to expand AirGuard into more Kenmore ranges? How about basic convection or true convection?

10: The Kenmore Elite range controls (glass touch panel) can be intimidating. Are there any plans to redesign for greater simplicity or ease-of-use?

11: Will the Kenmore rear-controlled front-load laundry set continue to be sold? It seems to have much lower sales than any other laundry.

12: The elimination of the sister model system has been a blessing. There are still some items (mainly smaller refrigerators) that continue to have sister models. Will the elimination of sister models be complete eventually, or will those few items continue to have two model numbers?

I think that's all I've got for now. :)

Wow, basically covered all of my questions, lol.

Only other thing i can think of, which may not be something you know the answer to, was that a few months ago i was talking to an appliance salesman for another store, and he said that the GE laundry was made by LG, and said something about them looking to outsource all of their appliances. Is there any truth to that? (I assume it was nonsense, because i couldnt find any proof of it, but i have yet to talk to a GE rep.)

Only other thing i can think of is why does Sears have a habit of flooring a laundry unit like a washer and then not putting its matching dryer on the floor plan as well? drives me crazy. (my store has no less than 4 models that are missing their counterparts.)

GE and LG stoves are the same OEM. If you open the door to the LG stove on the salesfloor, and open one of the cheaper GE stoves, you'll see the exact same crescent hinge in both of them. LG, therefore, is likely making all of GE's ranges. Samsung makes GE's 3-door refrigerators. I'm not sure if Samsung is also doing the side-by-sides, but it's possible. I think Frigidaire is the OEM for GE's top-mount refrigerators. Microwaves are, I believe, Samsung products. As for dishwashers and laundry? No idea, but whoever they are, they need a stern talking-to. :)

Per my GE rep the only outsourced product currently is their 3 door refrigerators.  I'm not disagreeing but thats just what she said.  I would also agree that GE's laundry and dishwashers are far from their strength, atleast in my humble opinion.

Hmm, very interesting.  Does OEM matter a lot to you guys?  Which manufacturers consistently have the best reputation or innovation?  And do you guys get this information primarily through the sales reps that come through the floor?

By the way, the 2009 Q2 Whirlpool conference call reveals a lot about what they're thinking about their Sears strategy.  Very interesting stuff.

OEM matters little to none for me, however it seems to matter atleast to a point with customers.  Infact around a fifth of the customers I work with have an "anyone-but-(brand)" preferance.

As far as innovation and reputation I am fairly partial to the Whirlpool products and Whirlpool-made products but I prefer the Kenmore French doors by LG more than the Kenmore French doors by Whirlpool.

In the end whoever the OEM is I think most Kenmore loyalists will feel that as long as Sears puts its trust into the OEM they will have a quality product.

Is there anywhere one can access that conference call? I'm sure a lot of us would like to catch the highlights. :)

I think OEM is extremely important. For instance, Whirlpool's innovation and prowess in dishwashers, as well as their ability to incorporate proven technologies into their existing machines makes their products a great choice for a Kenmore OEM.

Likewise, Electrolux's strong focus on premium features with excellent performance in cooking appliances makes them an excellent OEM for ranges.

Every manufacturer has strengths and weaknesses, and taking advantage of those strengths makes Kenmore a stronger brand. If we have a sub-par Kenmore product, I'm not going to tell someone it's great because it's ours. I'm going to guide them to something that will better suit their needs in the same price range.

While cost is certainly a consideration, it should not be the sole consideration, and I'd be worried if that's what was the primary driver in certain OEM picks. Kenmore didn't become the market leader by slumming for manufacturers. Getting the best companies to make the best products at the best prices is what got Kenmore to the top of the hill, and it's what will keep Kenmore at the top.

Just Google "Whirlpool Q2 2009 conference call."  There's a transcript on Seeking Alpha, I believe.

Blue Crew, please email me at jxu03@searshc.com.  I would love to get your thoughts on some other questions.

Yeah, I discovered it at Seeking Alpha. It was a rather...amorphous response to the questions about the WP/SHC relationship. I mean, that's to be expected, as they neither want to be too forward-looking, while they also want to reassure investors that there's a positive outcome to be expected (or, at least, no negative result anticipated).

chiming in a little late maybe, but, yes OEM matters a lot to me. I'd say about half of the customers i have don't realize Kenmore isn't a manufacturer, but the other half that do, always want to know who actually makes the item, because like VA said, most people seem to have a preference to at least want to avoid a certain manufacturer, and a lot of people also feel reassured when a company they prefer is making the appliance.

To me, I can't understand why anyone would want to buy a washing machine not made by Whirlpool. They have lots of experience making them and it shows, their designs are solid and they have a lot of innovative features. The fact that Whirlpool makes most Kenmore laundry is a huge plus, because i honestly think they have the best designs, and we can offer them with the Kenmore branding with a couple extra features at a better price - making Kenmore a dominant brand.

Like MA said, Electrolux is a great OEM for cooking. they were the first company to put induction into a freestanding range - and having an agreement with them to put it into a Kenmore Elite branded item before the Electrolux model even came out gave us a huge advantage, and continues to provide sears with an edge in cooking appliances. (the elongated 5th burner in gas ranges, and seperate hot surface indicator lights for electric burners are features other companies just don't offer, so going through electrolux is a great advantage.)

Really right now Kenmore is using the best OEMs to make each appliance in every category it seems, with just a few exceptions. Since Whirlpool doesn't make smaller laundry units or top controlled front loaders, kenmore went to electrolux and LG. While they might not be as well suited in the market, being the only companies offer those products means we can show customers better prices on the kenmore appliance and steer customers away from the other stores carrying just the ones offered from the other company.

The only thing that dissapoints me is the Kenmore MHCs. A while back there were a few models that used GE's Advantium speedcook, which was nice since its such a different design. Whirlpool currently makes an amazing "Velos" MHC thats 2 cubic feet and does basically everything (grill, convection bake, etc.) - SHC should jump on that model for a Kenmore Elite branded item, since there really isnt anything competetive from KM/KME, especially since the drop of those Advantium MHCs.

OEM only matters in that we like to know that the company who makes it isn't just making it for us because they can give us the lowest price, but because they can give us the best combination of build quality, featuers, AND price. For instance, i'm pretty sure you would see a lot of blue crew folks up in arms if the kenmore top load laundry went to GE, but they probably wouldn't mind if electrolux took over. (GEs big selling point right now is the price, but most of us don't feel the build is up the par with Whirlpool.)