Why Amazon Should Buy Sears
By Leslie Cohen
The Diehard-branded products, battery chargers, car batteries, jump starters, and tires are being sold on Amazon giving access to new customers for the online retail giant. Sears (NASDAQ:SHLD) also inked a deal selling the Kenmore Brand of appliances on the Amazon platform-. (NASDAQ:AMZN).
Sears and Amazon Make Good Synergy.
Technology wise, using Sears appliances utilizing the smart technology of Alexa in their appliances makes sense. With a potential purchase of Sears, Amazon could utilize the massive real estate Sears holds to use as technology showrooms using the Echo products in the appliance brands for Kenmore and Whirlpool products. Hence, the ability for Amazon’s customers to shop online and offline.
Let’s not forget, Walmart (Wal-Mart Stores Inc. NYSE: WMT) is going head to head against Amazon and has had a blast-out year with the improvements it has made to compete with Amazon. Same-store comps were up by 2.7%
Amazon could change the landscape for Sears retail strategy making the partnership a win-win situation.
If Amazon did a buy out for Sears, it certainly would be getting a better deal than it did when it bought Whole Foods for $13.7 billion in 2017 for about grocery stores 470 grocery stores. Amazon clearly realizes that it must have a large imprint for its brand in the brick and mortar retail space.
Eddie Lambert sure has restructured Sears to make it an attractive offer to Amazon. He has invested heavily in the e-commerce side of Sears and coupled with Amazon’s big data force, the products could become a big powerhouse of sales for Amazon entering the appliance industry. This omni-channel strategy is a powerful partnerships and growth of the Kenmore brand.
As noted on Sears website’s press release January 11, 2018 – “The Company has identified $200 million of cost savings, unrelated to store closures, to achieve its goal.”
Amazon acquired Whole Foods Why Amazon Should Acquire Sears
Disclosure: I am/we are long SHLD.