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Target to stop selling amazon kindles in its stores - Co2 Fractional Laser Machine by vacuumse mse





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Target to stop selling amazon kindles in its stores - Co2 Fractional Laser Machine by
Article Posted: 01/09/2013
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Target to stop selling amazon kindles in its stores - Co2 Fractional Laser Machine


 
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Target plans to stop selling Kindle e-readers in itsbrock-and-mortar stores after seeing buyers test the devices in itsshowrooms only to later buy them online from Amazon. Target's decision was reported this week in The New York Times , after analysts reported in January that the company wasn'twilling to let online-only retailers use its 1,800 stores toshowcase their products while undercutting Target's prices. Target's decision could influence other retailers that sellKindles, including Wal-Mart, Staples and Best Buy, analysts said.Amazon and the other physical retailers didn't respond to a requestfor comment. "Target's problem is a common problem for brick-and-mortarcompanies," said Rob Enderle, an analyst at Enderle Group."Customers will find what they want at the store, then leave andshop for the best price online." Smartphone apps now available allow customers to scan a barcode ona product in a store and instantly look for better prices at otherstores in the area and online, Enderle noted. What has made matters worse at Target is that Amazon's Kindle Firetablet also serves as Amazon's online storefront to everythingAmazon sells, Enderle added.

"So that's like Target is promotingall of Amazon, and Target's not a fan of doing that," Enderle said. Enderle said if other brick-and-mortar retailers stopped sellingKindles, Amazon's physical shelf space could dry up and Amazonwould have to find shelf space by opening stores in malls orkiosks. Barnes & Noble has one advantage in selling Nooke-readers and tablets because it can offer a place for users totest out the devices before buying them, analysts said. Jack Gold, an analyst at J.

Gold Associates, said he would not besurprised to see Best Buy or Staples, among others, "push back onselling Amazon Kindles as a result of this frustration withAmazon." However, even if large retailers stop selling Kindles in theirstores, Gold sees a "minimal effect on Amazon and Kindle sales"simply because most of their devices are sold directly. Also, offline retailers wouldn't see much material impact if theystopped selling the devices, since there was probably only a smallmark-up for them, Gold added. Amazon has sold its Kindles at a loss, primarily to encouragepurchases of books and other merchandise with the device where itcan make a profit, Gold noted. "It's not a real penalty to Amazonto only have direct sales of the device," he said.

Matt Hamblen covers mobile and wireless, smartphones and otherhandhelds, and wireless networking for Computerworld. Follow Matton Twitter at @matthamblen or subscribe to Matt's RSS feed . His email address is . See more by Matt Hamblen on Computerworld.com. Read more about retail in Computerworld's Retail Topic Center.

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