The Brick and Mortar War Against “Showrooming”
Wal-Mart Will Stop Selling Amazon.com Kindles – ABC News
Retailers are trying to fight a growing practice called “showrooming.” That’s when shoppers, armed with smartphones, browse products in physical stores and then shop online for a better price.
The move echoes Target Corp.’s decision to stop offering the Kindle in May following its own merchandise review. And it comes ahead of the holiday season, which is crucial for retailers since they generate up to 40 percent of their annual revenue during the period. Tablets are expected to be a popular gift this year, much like last year.Joanna Stern/ABC NewsAmazon’s Kindle Fire HD has a 7-inch display,… View Full Size
“Amazon is clearly becoming a more attractive consumer retail destination, so it was inevitable that Target or Wal-Mart would stop selling the Kindle product,” said Morningstar analyst R.J. Hottovy. “They perceive Amazon as a potential threat, and this is one way to neutralize that.”
My guess is that they’ll end up furthering their own “neutralization.”
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