Sears Holdings Corp (NASDAQ: SHLD) is having an incredibly strong day in the market today, and for good reason. Early this morning, the company announced a key agreement with Amazon.com, Inc. (NASDAQ: AMZN). While the terms of the agreement were not disclosed, it did indeed cause excitement among investors, leading to gains and prompting our partners at Trade Ideas to alert us to the movement. At the moment (10:03), SHLD is trading at $10.41 per share after a gain of $1.73 per share (19.93%) thus far today.
SHLD Gains Big On Deal With AMZN
As mentioned above, Sears Holdings is having an incredibly strong day in the market today after announcing an agreement with Amazon. Under the terms of the agreement, the full line of Kenmore Smart Appliances will be integrated with Amazon Alexa. The deal will help to expand the distribution of Kenmore outside of SHLD branded stores and related online platforms.
According to a press release offered early this morning, Kenmore Smart connected room air conditioners have already been integrated with Alexa and are now available on Amazon.com. While only the room air conditioners are available at the moment, the deal will soon expand to the entire line of Kenmore home appliances in all U.S. Market segments. In a statement, Edward S. Lampert, Chairman and CEO at SHLD, had the following to offer:
“We continuously look for opportunities to enhance the reach of our iconic brands to more customers and create additional value from our assets… The launch of Kenmore products on Amazon.com will significantly expand the distribution and availability of the Kenmore brand in the U.S. 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.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on SHLD. In particular, we’ll be watching to see how the relationship with Amazon works out, specifically with regard to sales of the Kenmore branded products. Nonetheless, we’ll continue to follow the story and bring it to you as it breaks!
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