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.
