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Wal-Mart To Cease Selling Amazon Tablets

Wal-Mart Stores, Inc. has announced its decision to stop selling Amazon’s tablets and eReaders, apart from the ones that they already have in their inventory, as well as those that they have committed themselves to purchasing from Amazon. However, it will continue offering the Apple iPad, Barnes & Noble Nook Tablet, Samsung Galaxy Tab, Google Nexus 7, as well as other tablet devices. Meanwhile, Best Buy Co. and RadioShack Corp. have announced that the Kindle tablets and eReaders will still be available from their stores.

Reuters offers that Wal-Mart’s decision was fuelled by the competition between both the company and Amazon, which are both in the retailing business. It may be recalled that target ceased offering the same product earlier this year.

Through these moves, Wal-Mart as well as Target may avoid cannibalizing their own sales. This is because Amazon is encouraging the users of its devices to use the Kindle Fire HD to engage in mobile shopping for a wide range of items which these retailers also offer. The move is thus congruent with their marketing strategy to ensure more sales, or at least that their customers do not buy items from Amazon’s online store instead of their outlets.

This likewise would help prevent the practice of showrooming. Showrooming means that some consumers go to brick-and-mortar stores to see the actual products and later proceed to ordering these from online retailers, where they are often not charged sales taxes. Amazon, Wal-Mart, Target, and Barnes & Noble, among others have declared their support for a law that standardizes sales taxes online to address this issue.

Meanwhile, Wal-Mart’s chosen time to stop selling the Amazon mobile devices means that the Kindle tablets will not be part of the device line-up that Wal-Mart will be selling during the lucrative holiday season.

For its part, Amazon is rumored to be planning to open its own physical stores where its tablets and eReaders may be purchased.

Amazon has not released its official statement regarding Wal-Mart’s decision.

via reuters, washingtonpost