The news of the last 15 Sears Auto Centers closing their doors brought a wave of nostalgia for many, including myself. Growing up, Sears Auto Centers were a familiar and trusted name for car maintenance. I remember as a kid biking to the Northgate Mall Sears Auto Center in San Rafael, California, with my friends. For my parents, Sears was the go-to place for tires, batteries, and the convenience of full-service auto care. Back in their prime, during the 1990s, it’s estimated these centers were generating around $3 million annually, which translates to about $5 million today, highlighting Sears’ dominance in the automotive sector with iconic brands like DieHard, Road Handler, and Craftsman. (Interestingly, even Allstate Insurance, a company spun off from Sears, started as a Sears tire brand.)
But what led to the decline of this once-automotive powerhouse, and more importantly, should we do car repair at Sears even now, considering their diminished presence? To understand this, we need to delve into the history of Sears Auto Centers and learn from their trajectory.
The Turning Point: When Did Sears Auto Repair Begin to Slide?
The early 1990s marked a turning point for Sears Auto Centers. In 1992, the California Department of Consumer Affairs accused Sears of recommending unnecessary repairs. This stemmed from a change in their technician compensation model, which incorporated commissions. A Los Angeles Times report from June 23, 1992, detailed Chairman Ed Brennan’s announcement that Sears was “discontinuing commissions for auto service employees” in response to the allegations. Investigations were also launched in New Jersey and Florida, further damaging the brand’s reputation.
Alt text: Exterior view of a Sears Auto Center showcasing multiple service bays, representing the brand’s historical presence in automotive repair.
This crisis was a major blow, and many believe it was the start of a long decline, despite the inherent potential of Sears Auto Centers. To gain an insider’s perspective, I spoke with former Sears executives like John Leach, who was CEO of Western Auto when the crisis hit. Sears had acquired Western Auto in 1988 to expand its reach beyond malls, bringing with it Tire America and NTW.
Leach explained, “Tire America and NTW were in charge of their own operations and they performed beautifully.” However, under Arthur Martinez, Ed Brennan’s successor, the focus shifted towards rebranding Sears with the “Come See the Softer Side of Sears” campaign.
The “Softer Side” and a Shift in Strategy
According to Leach, Sears made a strategic error by “taking space away from the hard lines in the stores to expand to the higher-profit soft lines.” He believes this alienated Sears’ core customer base who relied on them for durable goods and auto services. Furthermore, Sears moved away from its full-service auto repair model, reducing its involvement in underhood services.
Alt text: Interior of a Sears Auto Center service area, depicting a clean and organized workspace with mechanics attending to vehicles, highlighting the professional environment once associated with Sears auto repair.
This shift impacted Western Auto significantly. Leach stated, “It was probably the primary reason I left the company, because I had trouble supporting a strategy for Western Auto that I did not believe in.” Sears then consolidated the tire stores, moving them from Western Auto and centralizing operations in Chicago, a move Leach believes hindered their responsiveness to local market needs. “They wanted to centralize all decision-making and that doesn’t work well in a retail and service business. It made them slow to react to market forces,” he argued.
Despite these missteps, there were attempts to revitalize the auto business. Leach recounted a successful market test in Richmond, Va., in 1991. “We converted (some locations) to tire stores and called them Tire America by Sears…We blew the roof off. I think we tripled or quadrupled the tire business in those stores. I thought it was a successful test.” However, Sears leadership “never gave the green light to turn all their auto centers into Tire America by Sears,” missing an opportunity that Leach believes could have sustained the business. “I think those centers would be alive and well today had Sears made those conversions. They wouldn’t have needed the main store to draw traffic to automotive and it’s a great model for off-of-the-mall, as well.”
A More Recent Perspective: Building Back Service
To get a contemporary view, I also spoke with Frank Kneller, former CEO of Sun Auto Tire & Service Inc. and previously VP of Operations at Sears Auto Centers. Kneller echoed the sentiment that the 1990s crisis and the “softer side” strategy were detrimental. “I joined Sears as vice president of operations, Sears Auto Centers, in October 2010,” Kneller said. “The reason I joined Sears was to build back the service business. They had pretty much walked away from it because of all the restrictions” following the 1992 events.
Alt text: A skilled technician diligently working on a car in a Sears Auto Center, illustrating the expertise and hands-on service that Sears aimed to provide its customers.
Kneller’s efforts showed some promise. “They’d (also) gone from selling 20 million units a year down to six million and margins were dropping. So we built back some of the service business. We had 740 stores and were doing $1.3 billion — so about $1.8 million per store. It’s not a bad average.” This indicates that even years later, Sears Auto Centers retained a significant customer base and revenue potential.
Should You Do Car Repair at Sears Today?
Given the history, the question ” should we do car repair at Sears” becomes complex. The reality is, with the closure of most locations, the question is almost moot. However, understanding their past helps us learn valuable lessons about brand management, customer service, and adapting to market changes in the auto repair industry.
Historically, Sears Auto Centers offered:
- Convenience: Located in malls and standalone locations, they were easily accessible.
- Brand Trust: Leveraging the long-standing Sears brand reputation for quality and reliability.
- Comprehensive Services (initially): From tires and batteries to underhood repairs.
However, the decline was marked by:
- Damaged Reputation: The 1990s scandal significantly eroded customer trust.
- Strategic Missteps: Shifting focus away from core automotive services and centralization hampered growth.
- Market Competition: Increased competition from specialized auto repair chains and dealerships.
Today, when choosing a car repair shop, consider these factors, which are lessons learned from the Sears Auto Center story:
- Reputation and Trustworthiness: Look for shops with a proven track record and positive customer reviews.
- Specialization and Expertise: Consider if the shop specializes in your car make or the specific service you need.
- Service Transparency: Choose shops that clearly explain repairs and provide transparent pricing.
- Convenience and Location: Accessibility and convenient appointment scheduling are still important.
Conclusion: Learning from the Past
While Sears Auto Centers are largely a thing of the past, their story provides valuable insights into the automotive service industry. The question of “should we do car repair at Sears” is now mostly historical. Instead, we should learn from their trajectory – both their successes and failures – to make informed decisions when choosing a reliable and trustworthy car repair service today. Focus on shops that prioritize customer trust, expertise, and adapt to the evolving needs of car owners in the 21st century.
