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Buy your tires at Amazon, install them at Sears



  Is Amazon a monopoly?

Sears gets a much needed boost from his biggest nemesis: Jeff Bezos.

The iconic, but money-hungry retailer has signed a contract with Amazon to buy the tires they buy [19659004] Sears announced Wednesday.

Amazon also agreed to sell Sears tire brand DieHard. However, at Sears' Auto Centers, all tires purchased from Amazon will be installed for a fee, regardless of brand.

The announcement pumped some life into the Sears stock and raised shares in midday trading soon after the announcement by 1

9%.

Amazon is already selling tires online, offering buyers a network of garages where the tires can be installed.

DieHard tires and Sears installation services were listed on the Amazon shortly after the announcement.

This is not the first deal between Amazon and Sears. Last year, Sears began selling its Kenmore appliances on Amazon, the first time it had allowed the sale of that brand to another retailer. It started selling DieHard products except tires at Amazon late last year.

Sears is still struggling to raise cash, are facing huge losses and struggling with a steady decline in sales. It is trying to find buyers for the Kenmore and DieHard brands after selling its Craftsman tool brand last year at Stanley Black & Decker ( SWJ ) .

Related: Alexa, can you save Sears?

Total sales at Sears Holdings SHLD Both Sears and Kmart collapsed in 2017 by nearly 25%. Much of this was due to store closures, but even in stores that remained open, sales fell 14% for the year. And since 2010, the last profitable year, it has lost $ 10.8 billion.

Sears' problems go far beyond Amazon's competitive threat. But the growing preference of shoppers for online shopping is clearly one of the problems for the department store chain.

But before Amazon became a power in the market, Walmart's large crate dealers had already eaten away much of Sears' core business Home Depot ( HD ) , His cash position has become so bleak that he has little money to invest in marketing or upgrade businesses.

Related: Sears CEO offers to buy Kenmore brand

Doubts about his ability to stay in business have suppliers who demand cash in advance and the selection of goods available in the store limit its remaining stores.

Once upon a time, it was the nation's largest and most important retailer, similar to a combination of Walmart and Amazon in the mid-20th century.

It would have been inferior to get a deal to take over the installation of others' sales. Now it's one of the few new pieces of good sales news.

Meanwhile, sales, earnings and stock price rose Amazon ( AMZN ) . In the first three months of the year alone, profits more than doubled to $ 1.6 billion.

CNNMoney (New York) First published May 9, 2018: 3:03 pm ET


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