Sears Holdings Corp. (NASDAQ: SHLD) stock is climbing on Thursday after the company announced that it has entered into a strategic partnership with Amazon Inc. (NASDAQ: AMZN) to integrate its full line of Kenmore Smart appliances with Amazon’s Alexa. Sears has long been the markets’ whipping boy, but it seems that this troubled retailer’s luck might be turning around.
Shares of Sears were recently trading up about 19% at $10.37. The stock has a 52-week range of $5.50 to $18.18 and a consensus analyst price target of $4. Shares of Amazon were last trading up 0.5% at $1,031.94, with a consensus analyst price target of $1,122.81 and a 52-week range of $710.10 to $1,034.97.
Terms of the deal were not disclosed.
The distribution on Amazon.com is planned to be expanded to the full line of Kenmore home appliances in all U.S. market segments, with Kenmore, Sears Home Services, and Innovel Solutions providing delivery, installation and extended product protection for a full range of home appliances.
Rivals Home Depot (NYSE: HD), Best Buy (NYSE: BBY) and Whirlpool (NASDAQ: WHR) were all down by more than 4% in morning trading.
It’s no doubt that Sears will benefit from the relationship as more customers experience their quality services for Kenmore products purchased on Amazon’s expansive online marketplace. Sears has always been known for appliances, but that retail segment is getting more crowded with rivals such as Best Buy and Costco.
The news of this partnership is a welcome reprieve from the usual announcements that Sears has been putting out recently. The company has been trying to secure credit lines to stay afloat while trimming its real estate portfolio and liquidating unnecessary assets.
Edward S. Lampert, chairman and chief executive officer of Sears, commented:
“We continuously look for opportunities to enhance the reach of our iconic brands to more customers and create additional value from our assets. The launch of Kenmore products on Amazon.com will significantly expand the distribution and availability of the Kenmore brand in the U.S. At the same time, Sears Home Services and our Innovel Solutions unit will benefit from the relationship as more customers experience their quality services for Kenmore products purchased on Amazon.com.”