Why is Amazon partnering with Sears again?
For most retail industry watchers, the demise of Sears Holdings has been more a question of when than if for many years now. That hasn’t kept its CEO, Eddie Lampert, from claiming that he has the right plan to make his company a retailing force once again. In fact, Mr. Lampert said yesterday at the company’s annual shareholders meeting that the company was “fighting like hell” to get turned around. Based on other news announced at the meeting, it may take an assist from Amazon.com to keep Mr. Lampert’s claims from looking either misguided or dishonest.
Yesterday, Sears announced it will deliver and install car tires ordered from Amazon at its Auto Centers. Sears will charge a “standard installation fee” for services booked on Amazon.
The service will be initially available at 47 Sears Auto locations in eight metro areas — Atlanta, Chicago, Dallas, Los Angeles, Miami, New York, San Francisco and Washington, D.C. The program is expected to be quickly rolled out to the more 400 Sears Auto Centers across the U.S.
“Amazon.com customers can expect terrific performance and reliability from DieHard tires and professional installation from Sears Auto Centers,” said Tom Park, president of Kenmore, Craftsman and DieHard brands at Sears Holdings. “We’re thrilled to expand our assortment of this iconic brand to include passenger tires on Amazon.com.”
The program marks the first time that Sears DieHard tires are being sold on Amazon. The brand’s jump starters and other products have been sold on Amazon since December. Sears began selling its Kenmore brand appliances on Amazon last July and now has over 250 products available.
News of the Amazon deal sent Sears Holdings’ stock up 24 percent in trading yesterday. The company’s share price, CNBC reports, has fallen about 70 percent in the past year.
- Sears Auto Center Teams Up With Amazon.com To Make Tire Purchases And Installations Easier And More Convenient For Customers – Sears Holdings
- Sears is working with Amazon to deliver and install car tires – CNBC
- Sears CEO Eddie Lampert: We are still ‘fighting like hell’ – CNBC
- Did Amazon just send Sears a life line with their Kenmore deal? – RetailWire
DISCUSSION QUESTIONS: What do you make of the growing collaborative activities between Amazon and Sears? What is Amazon’s end game here?