Sears-Whirlpool curtail relationship after 100 years

NEW YORK (AP) — Sears will no longer sell Whirlpool-branded appliances, curtailing a business relationship that dates back more than 100 years.

In a note sent to its stores last week, Sears said Whirlpool was making demands that would've made it difficult to sell those name-brand appliances at a competitive price.

Sears has been ravaged by new competition for years, from stores like Home Depot and also from Amazon.com and other online retailers. It's been closing stores as competitors take a bigger slice of the territory it dominated for decades.

In the U.S., consumers buy most of their small appliances from Walmart, according to market research firm TraQline. Amazon comes in second, with Sears placing fourth behind Target.

The change to the Sears-Whirlpool partnership is effective immediately, and Sears is also pulling from its floor products from Whirlpool subsidiaries like Maytag, KitchenAid and Jenn-Air.

Sears said it would sell off the remainder of its Whirlpool inventory. Its stores will now only sell its Kenmore products and other brands like LG, Samsung, GE, Frigidaire, Electrolux and Bosch.

Whirlpool's CEO Marc Bitzer told investors today the company told Sears in May it would no longer supply branded products because it could not reach terms that were "acceptable to both parties." He said Whirlpool will continue to supply the Kenmore products it makes for Sears.

Bitzer also said the entire Sears business has declined over time and now accounts for only 3 percent of Whirlpool's global business, of which branded products are only a small fraction.