Sears Holdings Corp. (NASDAQ: SHLD) shares saw an incredible gain on Tuesday after the company announced that it would be expanding its partnership with e-commerce giant Amazon.com Inc. (NASDAQ: AMZN).
Essentially, Sears is expanding its program that provides full-service tire installation and balancing for customers who purchase any brand of tires — including DieHard — on Amazon. This was initially launched at 47 Sears Auto Centers in eight metropolitan areas, and now it is available nationwide.
So the way that this service works is that Amazon customers select their tires, the Sears Auto location and their preferred date and time for the tire installation. Sears Auto Center then contacts them to confirm their appointment.
Mike McCarthy, vice president and general manager of Sears Automotive, commented:
The response from Amazon customers around this program has been extremely positive. Our competitive bundled price for tire installation, which includes the installation of the tire, wheel balancing, valve stem or tire pressure monitor rebuild kit and the tire disposal fee is resonating with these customers. We’re thrilled to extend this valuable service across even more areas and into hundreds of additional stores. Providing excellent auto service, such as fast installation and free Performance Snapshot evaluations, is at the core of our business and partnerships. By working with Amazon, we’re proud to further meet and surpass that commitment, thanks to the ease and convenience of their program.
Shares of Sears were up about 22% in early trading indications. However, after the markets opened the stock was up only 13% at $1.25, with a consensus analyst price target of $2.00 and a 52-week trading range of $1.07 to $8.67.
Amazon shares were last seen at $1,932.66, with a consensus analyst price target of $2,111.69 and a 52-week range of $931.75 to $1,927.70.