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Sears lands another deal with Amazon — this time for car batteries, tires

  • Sears will now sell items from the DieHard brand on Amazon's website.
  • In July, the company announced it landed its first deal with the internet giant to sell appliances on Amazon.com.
  • The department store chain has been searching for ways to diversify its revenue stream, as fewer customers are visiting Sears' locations across the U.S.

Sears Holdings is expanding on its partnership with Amazon and will now sell items from its DieHard brand on the internet giant's website.

The retailer, which owns Sears and Kmart along with appliance brand Kenmore, has increasingly been searching for ways to diversify the company's revenue stream, as fewer customers shop its department stores.

Sears shares were climbing a little more than 1 percent Thursday morning on the news.

In July, the company announced it landed its first deal to sell appliances on Amazon.com and debuted a new "Kenmore Smart" skill for Amazon's Alexa, which would allow customers to control their appliances by voice commands.

"Launching on Amazon.com will significantly expand the distribution and availability of the DieHard brand in the U.S., building on the success of our recent Kenmore appliances launch on Amazon.com," Tom Park, the president of Sears' Kenmore, Craftsman and DieHard brands, said in a statement Thursday.

In an interview in July, Park explained to CNBC: "The Amazon platform is so broad and also focuses on the millennial generation," which Sears wants to reach.

Starting Thursday, Sears' customers will find battery-related accessories such as jump starters, maintainers and chargers on Amazon.com, the company said.

Early next year, Sears will sell DieHard-branded tires and actual automotive batteries on the website. The company has said its DieHard tires are "one of the leading tire brands" at the department store chain, which also operates Sears Auto Centers.

Meantime, Sears is beginning to open DieHard Auto Centers, which have already sprouted up in Texas and Michigan. In a bid to return to profitability, the company is selling off many of its larger assets (which it says are underperforming), and rolling out concept stores that sell only mattresses and appliances.

Buying itself more time as sales slump, Sears announced earlier this week the company has extended the terms of a $400 million loan to 2019 and also is planning to secure additional borrowing to cover upcoming pension payments.

Sears is expecting itself to reach positive adjusted earnings before interest, taxes, depreciation and amortization next year. The retailer's stock has fallen about 55 percent in 2017.