A few months ago Target decided against carrying Amazon e-Readers and Tablets because of their growing relationship with Apple. Today Walmart has announced that they will cease to order new shipments of Amazon Kindle devices across the entire board, but will continue to sell them until their existing stock is depleted.
“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 sent to store managers on Wednesday. “This includes all Amazon Kindle models current and recently announced.”
A Wal-Mart spokeswoman confirmed the decision and said the company would continue to sell “a broad assortment” of other tablets, eReaders and accessories. Amazon declined to comment. This broad assortment of devices include tablets and e-readers from Barnes and Noble, Sony, Apple and more.
Amazon is betting on their latest generation of devices function like a cash register, where the hardware is severely discounted and makes up for the difference with Amazon Prime, eBooks, Videos, Apps, and a wide array of content. Walmart does not make any money or commissions based on digital purchases and likely it will never come out on the exact reason why Walmart decided against carrying Amazon products.
If you were to ask me? I would say that Amazon is quickly sparking diminishing sales with the traditional big box stores with their free shipping for Amazon Prime members and more people prefer to shop with Amazon in the USA then say a Walmart. In order for Walmart to continue to gain strength, it has to axe the competition from their stores. In essence, both Target and Walmart sees Amazon as a competitor to their core business.