What used to be one of the top and major appliances companies in the market, was heavily falling off the radar compared to the other leading companies. Sears Holdings Corp. (NASDAQ: SHLD) seems to be making a bounce back, fighting through all those financial debts and staggering sales, as they announce to sell Kenmore branded appliances that are Alexa-enabled on Amazon Thursday morning.
This deal with Amazon will allow customers to shop and purchase appliances from the comfort of their owns homes.
"The launch of Kenmore products on Amazon.com, Inc. (NASDAQ: AMZN) will significantly expand the distribution and availability of the Kenmore brand in the U.S.," Sears CEO Eddie Lampert said, "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."
Sears says that the Kenmore products will allow customers to control their appliances, such as changing the temperature on an air conditioner without leaving the sofa.
With this deal, Sears is looking to expand its reach and grow the Kenmore name brand.
When Sears made the announcement of the new product line, other home appliance companies such as Home Depot and Lowe’s fell more than 3% at market open.
As the company has struggled to keep their branches running and profitable, it led the CEO to close down many branches as it had already went from 3,500 to 651 in just the past 6 years due to real estate struggles.
"This is consistent with Sears' aim of becoming more of a remote seller of strong brands without the encumbrance of expensive real estate," GlobalData Retail Managing Director Neil Saunders told CNBC. "The move makes sense as it puts Sears' brand products where customers are shopping and gives them a better chance of selling."
"That said, in the short term it may create even fewer reasons to visit Sears' shops, which could put further pressure on that side of the business," Saunders added.
"It also puts Sears into a marketplace which is very price competitive and where fulfillment costs are high; this is something that may be challenging for margins."
Earlier this year, CEO Lampert sat down for an interview with the Chicago Tribune and said that the company is "fighting like hell" to battle negative headlines and pessimism regarding Sears' ability to continue.
"The Amazon platform is so broad and also focuses on the millennial generation, which is very important for Kenmore to reach," Tom Park, the president of Kenmore, told CNBC in an interview Thursday.
When a user visits Amazon.com in the future to search for a refrigerator, Sears' Kenmore is going to be a top brand that pops up, says Park.