Is Amazon the Lifeline That Sears Needs?
This past week, Sears Holdings Corp. (NASDAQ: SHLD) saw its shares make an incredible gain, one that the company has not seen in a while. Perhaps this is the spark that puts Sears back on the right track. And it only seems fortuitous that one of the strongest companies in the world is helping what many consider a dying company.
In terms of the announcement, Sears said that it would be collaborating with Amazon.com Inc. (NASDAQ: AMZN) to provide full-service tire installation and balancing for customers who purchase any brand of tires on Amazon.
The collaboration stems from a growing relationship between Sears and Amazon, when Sears began selling Kenmore appliances on Amazon in July 2017.
With this new partnership, Sears Auto will become the first nationwide auto service center to offer Amazon customers the convenient Ship-to-Store tire solution integrated into the Amazon checkout process, which is easy and convenient. Amazon customers simply select their tires, the Sears Auto location and their preferred date and time for the tire installation. Sears Auto Centers then contact them to confirm their appointment.
The new Ship-to-Store capability will be initially available at 47 Sears Auto Centers in eight metropolitan areas. Following the initial launch, Sears Auto Centers quickly will expand this service to Amazon customers through its more than 400 Sears Auto Centers nationwide.
Tom Park, president of Kenmore, Craftsman and DieHard brands at Sears Holdings, commented:
Amazon.com customers can expect terrific performance and reliability from DieHard tires and professional installation from Sears Auto Centers. We’re thrilled to expand our assortment of this iconic brand to include passenger tires on Amazon.com.
This service will be rolling out to customers across the United States over the coming weeks.
Since this announcement was made, Sears shares have shot up roughly 24%. Including the move this week though, Sears stock still is down about 66% in the past 52 weeks, and the further we look back the worse the numbers get.
Shares of Sears closed out the week at $3.42, with a consensus analyst price target of $2.00 and a 52-week trading range of $1.99 to $10.76.
Amazon shares were last seen at $1,602.91, with a consensus price target of $1,820.20 and a 52-week range of $927.00 to $1,638.10.