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Thursday, May 3, 2012

Showrooming strikes again. But this time, Target strikes back.

Observation:  Target has decided to stop selling Kindle e-readers, according to a story from USA Today.  The article suggests that part of the reason might be what is called showrooming; when people take a hands-on look at a product in store, but then go online (either at home or from their phone) to buy the item at a cheaper price from an Internet vendor.  The story indicates that another motive might be the Apple mini-stores that are scheduled for launch in a number of Target locations (Apple’s iPad would be considered a direct competitor to Amazon’s Kindle).   Click here to see the story.

Implications:   One way to beat “showrooming” is to offer a product enhancement, service, or sales experience that online vendors can’t deliver.  It seems to me that Target has decided to do just that… but just not with Kindles.

[To see our prior stories on Showrooming, click here.]

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

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