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Sears Goes To Amazon In Search Of A Lifeline

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Sears Goes To Amazon In Search Of A Lifeline
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Sears Holdings Corp (NASDAQ: SHLD) shares surged more than 20 percent Thursday on news that it will begin selling Kenmore appliances through Amazon.com, Inc. (NASDAQ: AMZN).

Consumers can now buy Kenmore air conditioners on Amazon.com, and Sears plans to offer the full line of Kenmore products through the site soon.

Another thing getting investors pumped up was the announcement that Kenmore appliances will be integrated with Amazon’s artificial intelligence system, Alexa.

For example, consumers can tell their Alexa smart speaker to set the air conditioner for a specific temperature.

“The launch of Kenmore products on Amazon.com will significantly expand the distribution and availability of the Kenmore brand in the U.S.,” said Sears CEO Edward Lampert in a press release.

“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,” Lampert added.

Clinging On For Dear Life

Sears’ new partnership with Amazon comes over a year after management announced it was seeking alternatives for its various product lines and Sears Home Services business.

The news will hopefully stem the flow of news coverage proclaiming the death of Sears, once one of the country’s biggest department store names.

The company’s own regulatory filings weren't helping either. “Our historical operating results indicate substantial doubt exists related to the Company's ability to continue as a going concern," said a March 10-K.

The company has desperately been trying to cut costs, and is relying on loans — with a high interest rate — from its CEO to stay afloat.

Before Thursday’s Kenmore announcement, Sears was one of the hottest stocks among short sellers. Only time will tell if that stays true.

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Posted-In: Alexa KenmoreNews Contracts Retail Sales Top Stories Tech Best of Benzinga

 

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