Independent bookstores aren’t the only retailers chafing at the practice of showroom. Just ask Target.

In showrooming, customers enter a retail store and, when they have located the product they’re shopping for, walk out, go home and purchase the item on the Internet at a lower price.  Some shoppers simply scan the barcode of the production in the store and order it online on the spot. This in effect makes the brick and mortar store a mere showroom for customers to examine products they have no intention of buying there. Last Christmas Amazon actually promoted the practice, outraging alarming and outraging many stores and store chains. We know of at least one publisher that fought back by discontinuing distribution of its books on Amazon.

The latest objector is Target, the giant retail store chain. Executives, reacting to what they perceived as showrooming of Amazon’s Kindle e-book reader, informed Amazon they would no longer carry it.

Though Amazon sells most of its Kindles on its own website, many customers like to examine them physically, just as they may now do with Kindle’s rival, Barnes & Noble’s Nook, which may be “road-tested” by customers in B&N’s brick and mortar bookstore.  Recognizing consumers’ natural impulse to touch, Amazon began distributing Kindles in big retail chains.

It’s hard to predict what impact Target’s action will have on Kindle sales.  With nearly 1,770 stores in 49 states and gross revenues of $65 billion, boycott of a product by Target can have some seriously detrimental impact on any supplier. More ominously, if Staples, Best Buy and Wal-Mart, which also sell Kindles, see themselves as showrooming victims and follow Target’s lead, it could put a crimp in Amazon’s sales – and its image.

For the complete story read Target, Unhappy With Being an Amazon Showroom, Will Stop Selling Kindles by Stephanie Clifford and Julie Bosman in the New York Times.

Richard Curtis

This blog post was originally published on Digital Book World as Target Targets Amazon as Showrooming Enabler

Publishers Weekly just issued a bulletin that “the board of directors of the American Booksellers Association requested that the government begin an investigation into what the organization believes is the illegal predatory pricing policies being carried out by Amazon, Wal-Mart and Target in selling 10 hardcover titles for as low as $8.98. The ABA requested a meeting with officials as soon as possible, arguing that left unchecked, the predatory pricing policies ‘will devastate not only the book industry, but our collective ability to remain a society where the widest range of ideas are always made available to the public.’”

PW‘s Jim Milliot writes:

“The letter charged that the big box retailers are using predatory pricing practices to ‘attempt to win control of the market for hardcover bestsellers.’ By selling books below cost, Amazon, Wal-Mart and Target ‘are devaluing the very concept of the book. Authors and publishers, and ultimately consumers, stand to lose a great deal if this practice continues and/or grows,’ the letter stated. Furthermore, the letter noted, the companies involved in the price war are not engaged primarily in selling books, yet their fight could result in the entire book industry becoming collateral damage.

“The letter added that the price war over hardcovers was precipitated by Amazon’s decision to price e-books at $9.99. “We believe the loss-leader pricing of digital content also bears scrutiny,” the letter stated.”

From time immemorial, loss-leader pricing has been an instrument to drive competitors out of business. But with so many retailers and big-box stores joining in the sale of books below cost, the ones being driven out of business are publishers, authors and independent booksellers. We don’t know if ABA has a case but kudos to them for trying.

Richard Curtis

Michaelangelo had his Lorenzo de’ Medici, and Beethoven his Count Razumovsky. But where are today’s patrons of the arts? Tatiana de Rosnay, whose St. Martin’s Press novel Sarah’s Key has spent some six months on the bestseller list, might well claim Target as hers.

Target?

Not long after publication de Rosnay’s novel was nearly on life support until the discount retailer waved its magic wand over it, selecting it as a Bookmarked Club Pick and vigorously displaying and promoting it to customers. This blessing exalted Sarah’s Key to the Times list, with Target alone contributing more than 145,000 sales in its 1700 stores.

“Through its book club, as well as a program it calls Bookmarked Breakout, both started in 2005, the company has highlighted largely unknown writers, helping their books find their way into shopping carts filled with paper towels, cereal and shampoo,” writes the New York Times’s Motoko Rich. The chain’s success rate is all the more remarkable in that it carries no more than 2,500 books a year, according to Rich, but every one of them is displayed face out.

How does Target do it? Rich quotes Patrick Nolan, director of Penguin Group USA’s trade paperback sales division: “Target says every month, ‘Here are some new titles we’re bringing to you, and you can trust us, even if you haven’t heard of them,’ That is a very different approach.”

Read details here and learn about some other titles that Target has rescued from obscurity and lofted onto a pedestal.

Richard Curtis

Every Blogger owes a debt of gratitude to newspapers and magazines. This posting relies on original research and reporting performed by the New York Times.