Over the holidays, Amazon encouraged people to go to stores like Target to test out Kindle products, before ultimately buying them through the Amazon web site. According to The New York Times, Amazon even offered a promotion on any product that was scanned at the store. This showroom encouragement aggravated Target, leading them to pull the products from their display, as Stephanie Clifford and Julie Bosman explain.
“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,” Target executives wrote in a letter to vendors, asking them to think of new pricing and inventory strategies, according to a note that Deborah Weinswig, a Citi analyst, sent to clients.
Target will continue to sell Barnes and Noble Nook products and Apple’s iPad. And though it’s an obvious slap in the face to Amazon, analysts say it might not have a profound effect on the company, since it already sells the most successful e-readers available. What wouldhurt them would be if other stores, like Staples and Walmart, followed suit.