The more I think about it, the odder it seems that Best Buy (NYSE: BBY) will be stocking Amazon.com's (Nasdaq: AMZN) Kindles later this year.
Aren't the two companies fierce competitors? They're both trying to sell consumer electronics, media, and even digital media. If Best Buy succeeds in moving more Kindles, it will strengthen a rival.
I still like this move.
It made perfect sense when Amazon struck deals for shelf space at Staples (Nasdaq: SPLS) and Target (NYSE: TGT) this year. The office supplies retailer reaches a corporate audience that would probably appreciate stocking thousands of reads in a single gadget that's easy on the eyes. Cheap chic discounter Target was an iffier distributor, but it was Amazon's first foray into retail for the Kindle that it had been selling exclusively through its online store since 2007. No one expected Amazon to get it right the first time.
Best Buy? Helping Amazon? Well, the intentions do crystallize when one considers Best Buy's plan to expand its in-store e-reader displays. The superstore chain has been selling Sony (Nasdaq: SNE) readers for years. It began selling Barnes & Noble's (NYSE: BKS) Nook in April. Those displays would look awfully barren without the category killer. Best Buy would look dumb if it only stocked two of the three video game consoles. Even if it fattens Amazon's coffers -- that's if Amazon is turning a profit at these ridiculously low price points -- it's in Best Buy's interest to not appear out of touch to its customers.
Yes, it's a strange move -- but it's the right move.
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