Inside Wal-Mart's war against Amazon
The country's largest retail chain is ditching Amazon's tablets, the latest sally in an ongoing battle between traditional big-box retailers and their online rivals.
Wal-Mart will continue to sell tablets from other companies, including Apple (AAPL), and did not explain why it had singled out Amazon for exclusion. Wal-Mart isn't the first retail chain to ditch the Kindle. Target (TGT) did the same thing in May, suggesting the country's largest brick-and-mortar chains are starting to view Amazon as an existential threat to their business.
Here's a guide to Wal-Mart's war against Amazon:
What's so threatening about the Kindle?
Wal-Mart and Target view the Kindle as a Trojan horse because the gadget makes it easier for customers to buy products from Amazon. And not just books and movies. "Every time you pick up your Kindle, they're trying to get you to buy patio furniture" at Amazon, Colin Gillis, an analyst, tells The New York Times. "If I were Wal-Mart, I certainly would not be encouraging my customers to go down the path of owning a Kindle and buying things from Amazon."
Will it dent Wal-Mart's profits?
Hardly. "Amazon has been selling lower-priced tablets at thin -- if any -- profit margins to boost sales of digital media" from its online store, says Mae Anderson at The Associated Press. "That makes it less attractive for major retailers to carry Kindles in their stores."
How about Amazon's Kindle sales?
Not likely. "A vast majority of Kindle sales are made through its website," says Roger Cheng at CNET. However, Amazon could find itself in trouble if other retailers follow suit, depriving the company of valuable real estate in places where people shop. "Amazon still needs a way to get the hardware into people's hands," Gillis says.
Will other retailers drop the Kindle?
They probably should. Retailers like Best Buy (BBY), RadioShack (RSH) and Office Depot (ODP) say they will continue to carry Kindles, but they may soon realize that Amazon is not their friend. It's just a matter of time before other stores realize that "selling your competitor's major method of gaining customer loyalty" probably isn't "all that great an idea," says Tim Worstall at Forbes.
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I was once the principal of a private school and decided to do an experiment. I showed Mr. Smith goes to Washington and got groans and "Oh no it's not even in color." after about 30 minutes they were on the edge of their seats. Nothing beats a good story and good acting. And you don't even need four letter words and sex - shocking.
Walmart then forced me to drop the charge before they would reinstate my job, and then harshly retaliated on me in many ways including false write ups and 2 more wrongful terminations shortly after i returned. When I went back to the NLRB as they had told me to do should this occur Walmart gave perjurious testimony to the NLRB and told numerous extremely slanderous and defamatory lies in order to have the case dismissed. I have struggled very hard through 2 dismissals before obtaining my NLRB files through FOIA and managing to prove so many lies that walmart had told the NLRB, that i believe that is why The Deputy General Counsel finnally told me to re-file my case. It is now back open, but not going well.
Walmart has gone to great lengths, by doing things like what they did to me, in order to instill an atmosphere of fear of reporting in the employees. Everything is not fine at all in Walmart, in fact nobody has any idea how bad it really is because walmart has carefully ensured that the employees are so afraid to report wrongdoing that they won't even say anything when they hear a mentally handicapped female hysterically wailing across the store and hiding in the break room from the ongoing extreme verbal abuse of the store manager, and when the one guy naive enough to say something speaks up, he is promptly fired and subjected to many forms of retaliation up to and including false terminations and having his name defamed and slandered to the NLRB. I could go on and write a book about everything that I alone have been through, not to mention what others have been through with this evil tactic used by walmart to keep their employees quiet about the truth of what really goes on in those stores on a daily basis, but it seems nobody would probably even care. Meanwhile I have lost my job, my career of nearly 10-years, and probably any chance at ever retiring in my lifetime all because I reported employee abuse including of a mentally handicapped female by a store manager in our walmart store. Robert Snodgrass, 715 Taylor rd., Downingtown, Pa 19335, Thank You. God Bless you, and God Bless America
I sincerely hope wal-mart goes bust and that the little Mom and Pops come back.
we brought this on ourselves by insisting on unfair pricing practices.
in order for us to save 30 cents on a jar of peanut butter, these BIG companies need to pay some 55 year old lady minimum wage, and buy all their products from a country who despises, namely China.
Being frugal and wise with our money is smart, but abusing others to get lower prices is, in my opinion, immoral and despicable.
We hate the big chains, but we support them because we are greedy. Win-Win is all about fair, completive pricing with excellent service. These stores provide lousy service and sub par products.
I refus to shop at the big stores
amazon is an amazing company
jeff bezo's is an amazing guy
i HATE WAL-MART.
Wal-Mart is represents everything that is bad about our country
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The solid report comes a month after the retailer closed all of its Canadian operations.
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