Analysis: Amazon-Sears deal ‘smart move’
Greg Portell, lead partner in the retail practice of global strategy and management consulting firm A.T. Kearney:
"This is a very smart move from Sears’ perspective. It is able to monetize the Kenmore brand without losing control. In the past, Sears divested brands because it wasn't able to nurture them or get the proper value out of them internally. But in this case, Sears is using the brand differently as an asset, because it clearly has a value that stretches beyond simply being an appliance.
The other angle that jumps out in terms of smart moves is the connection to Alexa. It gives Sears the ability to get into the IoT (Internet of Things) market without having to build their own capabilities. Sears gets to take a premiere technology and integrate it into their products as part of this deal, which is a great way to move forward."
Sam Cinquegrani, CEO, digital marketing technology and services company, ObjectWave Corp:
"If you think of Amazon as your competitor, then you’ve lost the battle. But if you look at Amazon as a partner and a digital marketing expert, one that has capabilities you don’t have, it’s a whole different story. When it comes to e-commerce, Sears was very aggressive, and actually back then, one of the first to post its products online.
Now, Sears is thinking of Amazon as a distribution channel rather than a competitor. And this represents the future of retail. For Sears, why not take advantage of the digital prowess of the biggest ecommerce provider in the number one online marketplace? In the same way that Sears isn’t going to start its own delivery service because it can’t do it as effectively as a UPS or FedEx, similarly with Amazon’s marketing and distribution capabilities."