HOFFMAN ESTATES, Ill. -- Sears Holdings Corp. has launched a new strategic initiative for the Sears Automotive business. The new Independent Sears Auto Center franchise program offers automobile dealers the opportunity to operate licensed Sears Auto Centers, bringing the Sears brand, buying power, distribution network, systems and corporate support to automotive aftermarket businesses.
Coleman Auto Group of East Windsor, N.J., is the first dealership to take advantage of this opportunity and will open a Sears Auto Center in March 2010. Coleman Auto Group is utilizing a space formerly dedicated to its Chrysler dealership.
With more than 3,000 automobile dealerships that have lost their franchises, Sears designed the new franchise program to help those dealers leverage their facilities by building a set of businesses around parts and services, over-the-counter merchandise and previously-owned vehicle sales. The new Sears Auto Center franchise locations will provide the same products and services for automobiles, light trucks and motorcycles that are currently available at the nearly 850 company-owned Sears Auto Centers.
Those products and services include:
• An extensive tire selection, including brands such as Michelin, Goodyear, BF Goodrich and Bridgestone and more;
• Batteries from DieHard;
• Maintenance and repair services for consumer and commercial fleets, including: oil changes, alignments, shocks, brakes, coolant/antifreeze, air conditioning, transmissions, fuel system cleaning and more; and
• Custom wheels, car care products, truck boxes, fluids, floor mats, DieHard battery chargers, DieHard portable power, XCargo carriers and more.
Additionally, many of the new franchise locations will be located on properties adjacent to pre-owned vehicle and body shop operations, making it even more convenient for customers to service their existing vehicle or shop for a new vehicle.
"The Sears Auto franchise is a win for customers and a win for dealers," said Bill Jackson, senior vice president of Sears Holdings Corp. and president of Sears Authorized Independent Auto Centers LLC. "For customers, Sears Auto Centers will be more convenient than ever, with more locations providing our full product and service offerings. This is also a great opportunity for dealers who are currently selling used cars to gain a brand that's nationally recognized for quality and dependability, a resource for buying high-quality auto parts and supplies, and access to a proven business model that has been tailored to their needs."
"We're thrilled to join the Sears Auto Center network. No other opportunity combined so many features that we needed as we sought to stabilize our business and position it for future growth," said Bill Kendall of Coleman Auto Group. "Already, we've witnessed the level of support and care that Sears has invested in our success. And we are ready to work hard to leverage the strengths that Sears brings to our existing relationships with customers."
The new Sears Auto Center franchise model is available immediately to qualified dealers. In addition to giving dealers the ability to leverage the strength of the its brand, Sears said it will also work with dealers to provide the purchasing scale necessary to achieve superior pricing on tires, batteries, parts, equipment and supplies.
"We are creating an opportunity to leverage Sears Automotive's scale, business processes and brands so that dealers can build their businesses in service, parts and used vehicles," Jackson said. "Our franchisees are great business people with years of experience in selling and servicing vehicles. They have great facilities that need to be used to their fullest. Together, we can provide each other a great opportunity to grow our businesses."
