Procter & Gamble's partnership with Amazon (NASDAQ: AMZN) did not sit well with Target (NYSE:TGT), leading the retailer to change its in-store merchandising strategy for P&G products in retaliation.
The problem began when P&G allowed Amazon to share space in its distribution centers in October, according to The Wall Street Journal. The deal was made so that both P&G and Amazon would trim expenses by direct shipping products like Pampers diapers from the company's facilities rather than shipping them to an Amazon warehouse and then to customers. The deal would also allow P&G to grow online sales.
The partnership is said to have offended Target, which retaliated by placing P&G products in less prominent places in its stores, according to sources close to the matter. Target also reportedly began working with other suppliers to boost their sales figures rather than P&G's.
P&G originally approached Target with a similar offer that was rebuffed.
The dispute "has since de-escalated," the Journal reports, and Target has restocked shelf endcaps with P&G brands and products. P&G has also begun advertising big discounts on its products at Target over the last few weeks.
-See this Wall Street Journal article
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