Fans of Amazon.com’s Kindle eReader will no longer be able to find their beloved device in Target stores. In a daring move, the Minneapolis-based chain store stood by their January threat and took action against online competitors blatantly stealing consumers.
“What we aren’t willing to do is let online-only retailers use our brick-and-mortar stores as a showroom for their products and undercut our prices without making investments, as we do, to proudly display your brands,” Gregg Steinhafel, CEO of Target, and Executive Vice President of Merchandising, Kathee Tesija, wrote in a latter, according to The New York Times.
A majority of Kindles are sold on Amazon.com, even though the corporation doesn’t provide its own physical building for the consumers to visit and buy their product. Instead, Kindles are sold and displayed in large chain stores like Best Buy, Staples, and Target.
The company says its decision is a more direct attempt to stop the trend of “showrooming,” where would-be customers come into the physical store only to browse, and later buy what they like at significantly lower prices from online discount websites. Showrooming is getting easier to do with the Internet available at lighting speeds on smart phones and tablets everywhere.
Target saw red over the Christmas season, when Amazon offered a deal to consumers through its PriceCheck application on Droid devices and iPhones, according to Time magazine. The app allowed consumers to get up to 5 percent off items that were scanned in a store and then later bought online at Amazon.com.
According to Bloomberg News, online stores such as Amazon.com have gotten a major jump on mega retail chains by offering these types of deals. Amazon has grown its profits in the first quarter alone to $13.2 billion, a 32 percent increase in the last year.
Target will continue to sell e-books and tablets, similar to the Kindle, from Apple and Barnes and Noble.
Amazon did not immediately respond to interview requests.