Amazon deal boosts Sears stock – Consumer News

on Jul20

20 July 2017 | 12:47 pm

(AP) — Sears will begin selling its appliances on Amazon.com, including smart appliances that can be synced with Amazon’s voice assistant, Alexa.

It’s a reassuring sign for a retailer that’s been rattled by e-commerce upheaval.

The announcement Thursday sent shares of Sears soaring more than 18 percent at the opening bell. The tie-up with the internet behemoth could give shares of the storied retailer one of its biggest one-day percentage gains ever.

Sears, which also owns Kmart, said that its Kenmore Smart appliances will be fully integrated with Amazon’s Alexa, allowing users to control things like air conditioners through voice commands.

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AbidtopropupSears:SellCraftsman

Whydoesn’tLamperttakeSearsprivate?

“ThelaunchofKenmoreproductsonAmazon.comwillsignificantlyexpandthedistributionandavailabilityoftheKenmorebrandintheU.S.,”ChairmanandCEOEdwardLampertsaidinacompanyrelease.

Searshasstruggledwithweaksalesforyears,andannouncedmorestoreclosingsearlierthismonth,partlyduetotheemergenceofAmazon.comandotherinternetoperators.SearshadsaidinMarchthattherewas“substantialdoubt”itcouldcontinueafteryearsofbleedingmoney.

ManyonThursdaytooktheagreementwithAmazon.comasalifeline,withthevolumeoftradinginSearssharesjustattheopeningbellenormous.

Theagreementgoesbeyondthepointofsale,however.AlsopartofthedealforSearsisdelivery,installationandtheserviceworkthatcomeswithproductwarranties,whichwillbeprovidedbySearsHomeServices.

Amazonhaschangedthefaceofretailsinceitbecameapubliccompanymorethan20yearsago.ItrecentlybeganofferingdiscountsonitsPrimemembershipforpeoplewhoreceivegovernmentassistance,makingaplayforthelow-incomeshoppersatplaceslikeWalmart.AnditannouncedlastmonththatitwastestinganewwardrobeservicethatletsmembersofitsPrimeprogramtryonstylesbeforetheyputitemsontheirchargecardatnoupfrontfee.

SharesofHoffmanEstates-basedSearsHoldingsjumped$1.62to$10.30whentradingbegan.

Morecoverage:

Sears’ media-shy CEO lashes out at suppliers

Who loses as brick-and-mortar retailers crumble



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