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Published: Fri, October 27, 2017
Economy | By Melissa Porter

Sears no longer carrying Whirlpool appliances

Sears no longer carrying Whirlpool appliances

After a century-long history together, Sears Holdings Corp. will stop selling Whirlpool Corp. products after the companies couldn't agree on pricing terms.

"Whirlpool has sought to use its dominant position in the marketplace to make demands that would have prohibited us from offering Whirlpool products to our members at a reasonable price", Sears said in a memo sent to store employees last week.

Sears has been ravaged by new competition for years, from stores like Home Depot and also from Amazon.com and other online retailers. In the USA, consumers buy most of their small appliances, from Walmart, according to market research firm TraQline. Whirlpool, then called the Upton Machine Company, sold its first washers to Sears, Roebuck and Co.in 1916. In addition, we will continue to make available top brands that members expect from us including LG, Samsung, GE, Frigidaire, Electrolux and Bosch. Overall, he said Sears only accounts for about 3 percent of Whirlpool's global business - a "small fraction" when compared to other sources of revenue.

Whirlpool will continue to supply Kenmore-branded products to Sears, and the retailer will continue to sell its existing stock of Whirlpool products until they're all gone. At that time, Sears operated exclusively through mail order.

Sears' CEO Eddie Lampert slammed Whirlpool's retail vendors earlier this year, CNBC reported, saying, "We will not simply roll over and be taken advantage of - we will do what's right to protect the interests of our company and the millions of stakeholders we serve".

Shares of Whirlpool Corp., based in Benton Harbor, Michigan, tumbled more than 10 percent, or $18.30, to $164.20, in midday trading.

However, its shares fell more than 10% in afternoon trading in NY, while Sears shed more than 3%.

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