Target Corp said on Wednesday it would begin selling Inc's Kindle e-reader, in the first example of Amazon allowing distribution of its popular product outside its website.

The e-reader faces new competition from the iPad tablet from Apple Inc, which is sold at Apple's retail stores and at Best Buy Co Inc.

The availability of the Kindle beginning April 25 at Target shows that Amazon wants to increase its distribution and maintain its dominant position in the e-reader market.

The $259 device will carry the same price whether purchased on Amazon's website or in Target stores.

Shares of both Amazon and Target were flat after the market closed.

(Reporting by Alexandria Sage; Editing by Bernard Orr)