Amazon.com, Inc. (NASDAQ: AMZN) Reports on Thursday stated that Home Depot, Lowe’s, and Whirlpool have dropped after Amazon threatened to take on the appliance market in a deal with Sears Holdings. The market cap loss totaled to about $13 billion increasing both Amazon and Sears’ stock up about 13%.
Over the past years, Sears has been losing shares in the appliance market with stock dropping as much as 25% after they announced that they would sell its Kenmore branded appliances on Amazon.com which would be compatible with Amazon’s Alexa platform. Even though Whirlpool is the source for about half the Kenmore branded appliances, it’s too early to know how this deal will impact the integration of appliances and online retailers.
Oppenheimer analysts suggest that this deal would benefit Kenmore rather than it being a threat to home improvement retailers which have made an advance into appliance sales. Linking up with Amazon should be beneficial for Kenmore by enhancing the brand as a whole. Home Depot and Lowe’s have also been suggesting new efforts to improve their lineups of appliance products and advertise themselves as key sellers over the past couple years.