Dive Brief:
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Amazon.com’s Vendor Flex program has the Seattle-based online retailer setting up fulfillment centers within Proctor & Gamble’s own warehouses, saving money for both.
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The newly cozy relationship — which has actually gone on for some three years or so — has angered retailers like Target that have had long-term relationships with P&G, the Wall Street Journal reports.
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The Vendor Flex program is another example of Amazon’s hope to become the go-to retailer for commonplace household goods like toothpaste and diapers.
Dive Insight:
When Target got wind of Amazon’s Vendor Flex arrangement with P&G, the retailer removed P&G products from its end caps and curtailed many promotions of its P&G offerings, according to the Wall Street Journal. It’s a curious reaction that perhaps gives some insight into Target's most recent struggles. Right now it seems like there is no type of retailer that can take its eyes off the online retail giant, which is ambitiously making moves to become America’s place to go for — quite literally — everything.