by: Jayson Derrick, Benzinga Staff Writer
Amazon.com, Inc. AMZN 0.67%'s partnership with Sears Holdings Corp SHLD 19.2% started in 2017 with an agreement to sell Kenmore-branded appliances online. On Wednesday, the companies announced an extension of their relationship to now include tire delivery and installations.
Amazon's customers will soon be able to buy tires online and have it shipped to a Sears Auto Center of their choosing, the companies said in a press release. As part of the buying experience, Amazon's customers will also be able to book a time and date for the tire installations.
Amazon will also begin selling Sears' DieHard All-Season tires after DieHard products including jump starters and battery chargers began selling in December.
Why It's Important
Shares of Monro Inc MNRO 6.74% initially fell more than 7 percent after the announcement. The automotive service company was reportedly in talks with Amazon to offer a tire installation service to Amazon's customers who made a purchase online.
It may be reasonable for investors and traders to conclude that the likelihood of a Monro tie-up with Amazon is now less likely given Sears' announcement. It should be noted, however, that the language in the press release doesn't suggest that Amazon's deal with Sears is exclusive.
Update, 1:06 p.m. ET: A source familiar with the deal told Benzinga the Sears' partnership isn't exclusive and Amazon is free to pursue similar arrangements with other tire service providers.
Amazon's new agreement with Sears will be rolling out to U.S. customers in the coming weeks at 47 Sears Auto Centers in eight major cities. After the initial launch the service is expected to quickly expand throughout Sears Auto Centers' more than 400 locations.
Sears traded up more than 16 percent to $3.20 at time of publication.
Image credit: Phillip Pessar, Flickr
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.