Perfect play to:

1. Find out what people are buying in stores and not on amazon, and figure out how to get them to switch

2. Use this data to target more advertising/recommendations across amazon

3. Use the purchase data to perhaps create whole new brick and mortar stores that cater to the most in-demand products in different areas, like a more targeted walmart -- squeezing out the stores that once bought into this program.

I'd say it's a short term win, at the sake of long term loss of stores.

That being said, companies like this should declare a non-compete with the businesses they're luring in. Chomp!