Target to Build and Manage New Online Platform

Target, Inc. plans to build and manage its own platform for its Web site (Target.com), which it expects to launch in advance of the holiday season in 2011, breaking a 10-year relationship with Amazon, which has been a strategic partner for its Web site for the past decade.

Amazon and Target will continue to work together during the next two years to optimize performance of the existing platform and fulfillment services.

“Amazon has been an important strategic partner since we relaunched Target.com in 2001, and the strength of Amazon’s technology and fulfillment services has been a contributing factor in Target.com’s success,” said Steve Eastman, president of Target.com. “However, to deliver a customized multichannel experience for Target’s guests, 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.”

Despite the breakup, Target and Amazon will part as friends. “We are grateful to have been able to work with Target for the last eight years, and we wish Target the very best as they go forward,” said Sebastian Gunningham, SVP of seller services for Seattle-based Amazon.com, Inc.

Minneapolis-based Target operates 1,719 stores nationwide and at Target.com, a fully integrated online business. In addition, the company operates a credit card segment that offers branded proprietary and Visa credit card products.
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