Sears' clearance sales will be full of steep discounts, but one key uncertainty could keep shoppers from biting (SHLD)

pulse

October 15, 2018 4:21 PM

Sears has long been known as one of the leading appliances sellers in the United States, and many of those products are sold with warranties. Despite its past woes, Sears has maintained that it will honor its warranties.

GlobalData Retail's Neil Saunders says it is wise for these stores to stay open for the holiday shopping season in order to clear out inventory, but he warns that customers may be turned off of the deals because of the uncertainty around warranties.

Sears has filed for Chapter 11 bankruptcy protection and announced it will close 142 stores. These stores will close by the end of the year, giving them the chance to tap into the holiday shopping season on their way out.

While holiday sales are a good time to clear out inventory, at least one analyst says that some customers might be turned off by the uncertainty around the retailer's warranties.

Sears has long been known as one of the leading appliances sellers in the United States, and many of those products are sold with warranties.

Despite its past woes, Sears has said that it will honor these warranties.

However, experts say the warranties could be dissolved.

"I would advise customers to redeem their points now," she said.

As Sears has now filed for Chapter 11 bankruptcy protection, the fate of its warranties and rewards points will be decided in court. Sears has a lot of creditors to pay, so honoring outstanding warranties and loyalty points might become a lower priority.

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