Sears Holdings (NYSE:SHLD) announced that the company will be expanding the reach of its Kenmore brand by launching the brand on Amazon (AMZN). The company will also offer a full line of Kenmore Smart appliances that will integrate into Amazon’s Alexa product.
The announcement sent the company’s stock up as much as 25% in early-morning trade before prices started to taper off. Shares are now hovering around 15% up, or $10.03 a share.
The move will expand Sears’ reach by offering further distribution of the Kenmore brand outside of Sears branded stores. The company has already launched its Kenmore Smart room air conditioners on Amazon.com and plans to offer a complete line of appliances to the U.S. market.
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“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,” states Edward S. Lampert, Chairman and Chief Executive Officer of Sears Holdings.
Kenmore’s Smart skill is a feature that will allow owners of the company’s appliances to control their appliance via Amazon’s Alexa product. Users can simply ask Alexa to change the temperatures without needing to move from their seat.
Voice controlled appliances will be a focal point of the company’s offerings on Amazon and allow for a truly “smart” home.
The move is a risk for Sears, which has been struggling to revive in-store sales. Investors suggest that consumers will have less of a reason to visit stores thanks to the Kenmore brand being offered on Amazon.
The company has been transitioning to a remote seller of brands, lowering costs in the process.
Sears also announced on Monday that the company has secured a $200 million line of credit offered through Lampert’s ESL Partners hedge fund.