Amazon.com Inc., Seattle, is teaming up with Target Corp. to expand its offerings to include clothes, home furnishings and jewelry in a deal that combines the Internet’s biggest retailer with one of the nation’s most recognized traditional chains, Reuters reported.
Under the five-year alliance, for which no financial terms were provided, Amazon will receive sales commissions and annual fixed fees, while Target will get access to Amazon’s technology and 30 million customer base, the companies said in joint statement, Reuters reported.
The Target electronic store will be featured on Amazon’s main Web site, and is planned to open later this fall, the companies said. Target already operates its own online store, at www.target.com. Amazon’s electronic commerce platform, which includes simplified ordering for return customers and high customization and recommendations, would also power Target’s current online properties, including Marshallfields.com, Mervyns.com and GiftCatalog.com, Reuters reported.
Analysts have been expecting a deal between Amazon and a traditional retailer for some time.
“We believe this new Target store at Amazon.com provides another opportunity to expand our business,” Target Vice Chairman Jerry Storch said in a statement.
Amazon founder and Chief Executive Jeff Bezos said the deal would boost Amazon’s selection for the holiday shopping season, Reuters reported.Follow JCK on Instagram: @jckmagazine
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