Deal has tires sold on Amazon installed at U.S. Sears stores

Amazon.com Inc. has struck a deal with the U.S. Sears chain to provide tire services, boosting traffic at the ailing department store and extending the online retailer’s growing stable of alliances with brickand-mortar companies.

Sears Holding Corp. shares rose more than 25 per cent, marking its best day in over a year, after the company said it would install at its stores any brand of tires sold on Amazon. The deal also includes Sears selling its Diehard range of tires on the online retailer’s website.

Separately on Wednesday, the e-commerce giant said it had partnered with homebuilder Lennar Corp. to convert some of the home construction company’s model homes into showrooms for Alexa.

Amazon’s latest deal is another sign that the online behemoth sees the value of in-store pickup and inperson service that’s core to brickand-mortar retail, that it and rivals see room to co-operate.

Over the past year, the online giant has entered into partnerships with physical chains such as department store operator Kohl’s Corp. to sell Amazon-branded items as well as use its retail locations for picking up online orders. .

In April, Amazon tapped electronics chain Best Buy to sell smart televisions with the capabilities of its artificial assistant, Alexa, baked in. In return, Best Buy would become the exclusive merchant of these TVS on Amazon.com.

For Sears, the new deal extends its partnership with Amazon, where it already sells its Kenmore home appliances. It is a welcome boost for the struggling company that has seen years of declining sales as competition within the retail industry intensifies from the likes of Wal-mart and other e-commerce platforms.