Maytag appliances returning to Best Buy

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By Karen Jacobs

ATLANTA, April 11 (Reuters) - Whirlpool Corp. (WHR.N) said on Wednesday that its Maytag appliances will return to the Best Buy Co. (BBY.N) retail chain in May.

The expanded retail display marks a forward step in Whirlpool's effort to revitalize Maytag, which it acquired in March 2006.

"We've been able to demonstrate to Best Buy that our strategy on innovation is breeding new growth," said David Swift, president of Whirlpool North America. Swift said about 18 Maytag appliances will be available at Best Buy starting in May, which has been tagged "Maytag month."

Best Buy stopped selling Maytag washers and refrigerators in early 2005, citing a consumer preference for other brands. At the time, Maytag was a publicly traded company struggling with high fixed costs and increased competition from foreign appliance makers such as LG Electronics.

"Our decision to bring Maytag back was really triggered by restored confidence in the commitment to the brand," said Lisa Smith, vice president of appliances for Best Buy.

Best Buy said it had no plans to remove other brands from its appliance department in wake of the Maytag return.

Despite market share losses in recent years, Maytag remains a well-known consumer brand. A 2005 "power brand" ranking of strong U.S. consumer franchises by Home Furnishings News found that Maytag was in 12th place, down from 4th place two years earlier. "If the Maytag brand did not already have a lot of equity with consumers, this strategy would be significantly more difficult to execute," Swift said.

Since the acquisition, Whirlpool has developed new Maytag products, such as the Epic washing machine that opens from the front as opposed to the top.

To mark the 100th anniversary of the Maytag washing machine this year, Whirlpool unveiled the Maytag Centennial, a top-loading washer that has the traditional square shape and commercial features such as a stainless steel basket. The Maytag Bravos, a washer-dryer pair with see-through doors, was launched in recent weeks.

Earlier this month, Whirlpool selected a new Maytag repairman for its television commercials after an extensive nationwide search. The new repairman will "create some reinvigoration and excitement around the brand," Best Buy's Smith said.

At Best Buy, appliance sales at stores open at least 14 months rose 0.5 percent in the quarter ended March 3. Appliances accounted for 7 percent of Best Buy's total revenue for the year ended in March, up from 6 percent in the previous year.

((Reporting by Karen Jacobs; editing by John Wallace; Reuters Messaging: karen.jacobs.reuters.com@reuters.net; +1 404 493 3656)) Keywords: WHIRLPOOL BESTBUY

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