Sears re-entering lube biz with test of Jiffy in 3 stores - Jiffy Lube quick lube service at Sears Auto Service centers in Louisville, Kentucky

Discount Store News, March 7, 1994

LOUISVILLE, Ky. -- Sears, which abandoned the lube business two years ago to focus on tires and batteries, is going to test Jiffy Lube operations in three stores in the Louisville market.

Curtailment of general automotive service, including tune-ups and exhaust as well as lube jobs, left the 800 Sears Auto Service centers with excess service bays. Now Jiffy Lube centers will occupy two or three bays in each store: Oxmoor Center and Jefferson Mall in Louisville, and Green Tree Mall, across the Ohio River in Clarksville, Ind.

Jiffy Lube, a subsidiary of Pennzoil, will equip the service bays and operate them with Sears acting as the landlord. The six-month test will begin sometime this spring, and Sears will extend quick lubrication and oil change service to other stores if it proves successful in the test units.

Jiffy Lube will get its sign on the service center, along with the usual Sears Auto Service sign.

The Sears Jiffy Lube shops will charge a price competitive with the prevailing Louisville price of $23.99 for its 14-point quick lube, including changing engine oil and filter, and topping off other fluids, such as brake, power steering and radiator anti-freeze. The Sears centers will also offer other services, such as fuel injection cleaning, radiator flush and fill, air conditioner recharging and light bulb replacement.

The arrangement will enable Sears "to focus its attention on tires, batteries and other services not offered by Jiffy Lube," Jiffy Lube president Clyde W. Beahm siad, "and the consumer will have a wide range of services available in a single location."

Jiffy Lube is the largest quick lube chain in the country, with a total of 1,071 shops. Of those, 410 are company owned and operated, while the balance of 661 are franchises. The Jiffy Lube shops in the Louisville market are company owned, a spokeswoman said, so the Sears units will not engender any franchisee opposition.

In its curtailment of general automotive service, Sears surrendered much of its business to specialty shops, such as quick lube and tune-up centers. In its new approach, Sears specializes in tires and batteries and other items that are related to them such as brakes and alternators.

Similarly, Wal-Mart eliminated general automotive service last year, to specialize in tires and quick lube. In another example of co-branding, Wal-Mart features the Pennzoil name on about half of its 510 Tire & Lube Express centers and they use Pennzoil motor oil, unless the customer specifies another brand is willing to pay a $2 surcharge for the privilege. In the other half, Wal-Mart is giving Quaker State the featured treatment in terms of products and signage.

In a variation on that theme, Kmart is naming auto service operations in 10 SuperKmarts the Michelin Tire Center, with Michelin training tire service personnel and putting its name on uniforms and customer invoices, as well as the center itself.