Shopping Centers Today

SEP 2018

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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physical retailer to partner with Amazon," said Ben Conwell, senior managing director and practice leader of Cushman & Wakefield's commerce advisory group. Sears Holdings began selling its Kenmore appli- ances on Amazon.com in 2017. In May the company announced that it would provide a ship-to-store option at Sears Auto Center stores as well as installation and balancing services for customers buying any brand of tires on Amazon. Sears also agreed to sell its own DieHard all-season tires on the Amazon mar- ketplace. The agreement initially started with 47 Sears Auto Centers across eight metro areas and with plans to expand the service to the company's roughly 400 U.S. automobile centers. From Amazon's perspective, the main thing behind these partner- ships was the removal of any fric- tion points for customers wanting the option to visit a store to return or pick up an item, or to shop for Amazon label items physically and in per- son. "For Amazon, it's an acknowledgement of their need to be a little closer to the customer, to have a physical presence and be able to satisfy the customer's more pressing needs on a day- to-day basis," said Joseph Feldman, a senior man- aging director and assis- tant director of research at New York City–based Telsey Advisory Group. The Sears partnership also opens up possibili- ties to bring even more products and retailers to the Amazon marketplace, where installation assis- tance might be needed for certain goods. "You're solving that obstacle and making it easier for customers to buy products like tires online if the customer knows there is a reputable, capable service available to install them," said Conwell. It is very like- ly that the retail industry could see similar partnerships emerging in the future, he says. 18 S C T / S E P T E M B E R 2 0 1 8 Piggybacking on Amazon's success S T O R E F R O N T S W H AT T H E T E N A N T S A R E U P TO R etailers, brands and manufact- urers have showed themselves eager to peddle their wares on the Amazon.com online marketplace. Now these same vendors are testing out ways to bring those commercial initiatives — along with the millions of Amazon shoppers — back into their brick-and-mortar stores. Best Buy, Kohl's and Sears are among the major retailers that have forged alliances with Amazon in hopes of boosting sales and traffic within their stores. Kohl's rolled out a pilot program in October 2017 through which mer- chandise returns on Amazon purchas- es are accepted at 82 stores across the Los Angeles and Chicago metros. Ten of those stores also include a beta test for Amazon Smart Home Experience stores. These 1,000-square-foot store- in-store units sell Amazon's Fire TV, Echo Dot and similar devices. The program has been effective in driv- ing foot traffic to Kohl's stores, both before and after the holiday season, as former Kohl's CEO Kevin Mansell would often point out. Others saw the potential too. "It was definitely a symbiotic relation- ship, and I think it taught the retail industry that this can work and [that] there can be positives for a legacy ONLINE MAT TRESS RE TAILER CASPER AND PIZ Z A DELIVERY GIANT DOMINO'S BOTH HAVE BIG E XPANSION PL ANS 20 PHARMACY CHAINS ARE WELL-PL ACED TO COMPETE WITH AMA ZON'S PILLPACK 22 Retailers forge partnerships with e-commerce giant to boost store traffic By Beth Mattson-Teig 47 400 Sears is installing Amazon-bought tires at Sears Auto Centers across eight metro areas. It plans to expand the service to the company's roughly service centers

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