As Amazon continues its reign as online retail powerhouse, Wal-Mart will no longer sell the Amazon Kindle in its stores.
According to The New York Times, Wal-Mart will sell what’s left of the Kindles with no plans to re-stock once they run out. Kindles will also be pulled from walmart.com and Sam’s Club. Wal-Mart will, however, continue to sell similar e-readers by other companies, including Apple, Google, Barnes & Noble, and Samsung.
Wal-Mart did not give a reason for the drop, but analysts say it’s obvious. Amazon has become more of a competitor than companion. Experts say when people shop in stores like Wal-Mart and see the Kindle, it encourages them to go home and purchase the Kindle online along with books, games, and movies from Amazon.com, taking Wal-Mart’s business elsewhere.
Analysts also say the drop won’t affect business at Wal-Mart very much, as Stephanie Clifford and Julie Bosman explain.
Moreover, the Kindle line, and most tablets, are only marginally profitable for retailers, said Sarah Rotman Epps, an analyst at Forrester Research.
“A lot of them have had it with tablets other than the iPad,” she said. “They’re not high-margin products, and other than Apple ones, no one is selling these devices in great volumes anyway. For Wal-Mart to drop Amazon is more of a symbolic blow rather than a substantive one.”
Wal-Mart’s not the first store to drop Amazon Kindle products. In May, Target also dropped Amazon products from its stores.