Why is Walmart Dumping Kindle?
Wal-Mart Stores Inc. (NYSE:WMT) will stop selling Amazon’s (NASDAQ:AMZN) Kindle line of products at its Walmart stores soon, mirroring rival Target’s (NYSE:TGT) decision last month to drop the online retailer’s electronic devices. A Wal-Mart spokeswoman confirmed the company’s decision to Reuters, which had earlier received information of an internal Wal-Mart memo notifying employees of the same. Amazon unveiled a refreshed line of Kindle e-readers and four Kindle Fire HD tablets earlier this month.
“We have recently made the business decision to not carry Amazon tablets and eReaders beyond our existing inventory and purchase commitments,” Wal-Mart said in a memo targeted at store managers. “This includes all Amazon Kindle models current and recently announced.”
Wal-Mart said it would continue to sell a variety of tablets, presumably including Apple’s (NASDAQ:AAPL) iPad and Barnes & Noble’s (NYSE:BKS) Nook line. “Our customers trust us to provide a broad assortment of products at everyday low prices, and we approach every merchandising decision through this lens,” Wal-Mart said in a statement sent to media organizations later. “We will continue to offer our customers a broad assortment of tablets, eReaders and accessories at a variety of great price points.”
The decision on Amazon was reportedly taken as part of the overall merchandising strategy. With Wal-Mart looking to build up its online business, Amazon is its biggest competitor. And consumers who buy Kindle tablets use those devices to shop for more than just digital books.
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