News of supermarket chain Sears’ bankruptcy has brought cheers to competitor Stanley Black and Decker as it now estimates rapid sales growth in its Craftsman brand of tools. The Connecticut based Stanley Black and Decker had purchased Craftsman brand from Sears last year and now expects to achieve $1 billion in sales by 2021 which is six years ahead of its previous estimate when it had purchased the division. During third quarter of this year the firm witnessed growth of 3 percent in revenue from sales of tools and storage equipment which was also helped by launch of new Craftsman products.
After Sears filed for bankruptcy earlier this month and announced that it will shut down 142 stores of both Sears and Kmart across the nation for restructuring purpose, sales of Craftsman that is now owned by Black and Decker are likely to get an additional boost. Before this acquisition around 90 percent of all Craftsman products were sold by Sears and Kmart and even after the takeover by Black and Decker Sears Holding can sell its own range of Craftsman tools free of loyalty charges for 15 years.
Stanley Black and Decker CEO James Loree said that they were prepared to attract customers away from Sears and has continuously strived to increase distribution and expand Craftsman’s portfolio since acquiring the brand by spending $900 million. He said that from last month they have started selling more than 1200 new Craftsmen products comprising of tools, equipment and also storage cabinets. These products will be sold through Lowe’s, Amazon, Ace Hardware and other large retain store chains. The firm has also increased its manufacturing capacity to meet the growth in demand for Craftsman products and will initially meet 30 percent of its new demand from United States and will slowly expand domestic production to meet 50 percent demand within next few years.