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Amazon Inks Partner Deal with Target

The discount chain will have its own store at the e-tail site; Amazon expands its product offerings to include clothing, jewelry and home furnishings.

September 11, 2001
By Beth Cox: More stories by this author:

Online retail bellwether Amazon.com signed an online sales partnership deal with Minneapolis-based Target Corp., which operates about 1,000 discount stores across the United States and competes with Kmart and Wal-Mart.

Amazon said it plans to open a Target store on its site later this fall, and will expand the product offerings available at its site to include thousands of clothing, home, electronics and jewelry products.

The deal is sometwhat similar to the arrangements Amazon has with electronics store chain Circuit City and Toys 'R' Us.

Target currently operates its own online sales venue at Target.com, where it sells everything from home furnishings to office supplies, including clothes, toys and electronic goods.

The companies also said that Target has selected Amazon.com's complete e-commerce technology services solution, including order fulfillment, and customer care services for its current online properties, including Target.com, MarshallFields.com, Mervyns.com and GiftCatalog.com, beginning next summer. Financial arrangements were not disclosed.

All of these online properties will continue to be owned by Target.

Financial specifics were not disclosed, but the companies said that under the terms of the five-year agreement, Amazon.com will receive per unit fees and annual fixed fees, while Target will receive the benefits of the Amazon.com e-commerce platform and vast customer base to accelerate its already-rapid growth online.

"This strategic partnership with a leading retailer like Target hits the bulls-eye," said Jeff Bezos, founder and CEO of Amazon.

"Target.com has experienced tremendous growth in the past 12 months and we believe this new Target store at Amazon.com provides another opportunity to expand our business," said Jerry Storch, vice chairman of Target Corp.







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