RealTime IT News

Target Parts Ways With Amazon.com

Target (NYSE: TGT) will build and manage its own online platform for Target.com and aims to launch the new Web site in advance of the 2011 holiday season, the company said on Friday.

The announcement by the No. 2 U.S. discount retailer signals the end of a relationship with online retailer Amazon.com (NASDAQ: AMZN) that began in 2001.

"We believe it is in Target's best interest going forward to assume full control over the design and management of Target's e-commerce technology platform, fulfillment and guest services operations," Target.com President Steve Eastman said in a statement.

Target said it had previously extended its contract with Amazon to 2011, and the companies will continue to work together during the next two years.

Amazon, which started as a bookseller and ran sites for big retailers like Target, has moved toward carrying everything on its own site in recent years, while also operating a thriving business that allows other companies to sell to its customers through its site.