Target and Shopify Partner to Help Consumers Discover and Shop an Expanded Assortment on Target.com

Rhea-AI Summary

Target (NYSE: TGT) announced a partnership with Shopify, enabling select Shopify merchants to feature products on Target Plus, Target's curated online marketplace, and in physical Target stores nationwide. This collaboration aims to expand Target Plus's assortment with new, trendy products and brands like True Classic and Caden Lane.

The partnership allows Shopify merchants in the U.S. to apply via Marketplace Connect to sell on Target Plus, providing consumers with a broader range of affordable, high-quality items. Target Plus, launched in 2019, currently features over 2 million products from more than 1,200 partners, offering perks like 5% off with a Target Circle Card and free shipping on orders over $35.

Target's executive vice president, Cara Sylvester, emphasized the partnership's goal to offer a thoughtfully curated and affordable selection for shoppers. Shopify’s president, Harley Finkelstein, highlighted the opportunity for high-growth brands to reach millions of new customers.

Positive

• Target's partnership with Shopify expands Target Plus's assortment, offering new, trendy products.
• Select Shopify merchants' products will be available in both Target stores and online.
• Consumers can enjoy Target perks like 5% off with a Target Circle Card and free shipping on orders over $35.
• The collaboration helps high-growth brands reach millions of new customers, enhancing business opportunities.
• Target Plus currently features over 2 million products from more than 1,200 partners, reflecting quality and value.

Negative

• None.

Insights

Market Research Analyst

The new partnership between Target and Shopify widens the horizon for both companies. Target gains access to Shopify's diverse merchant base, thereby diversifying its product lineup significantly. For Shopify, partnering with a major retailer like Target offers an expansive new sales channel for its merchants, potentially enhancing their reach and revenue streams. This collaboration could effectively tap into 30% of U.S. e-commerce sales that are expected to come from marketplaces by 2025. It's a strategic move to stay competitive in the evolving retail landscape.

Such partnerships often lead to synergies where both companies leverage each other's strengths. For Target, Shopify's merchants could bring fresh, trendy products that attract younger consumers. For Shopify, Target's established customer base and retail infrastructure offer a substantial boost. However, one potential downside is the risk of marketplace saturation, which could dilute consumer experience if not managed properly.

Rating: 1

Financial Analyst

From a financial perspective, this partnership could be a win-win. Target's revenue from its digital channels has been growing and this initiative could accelerate that growth. With online sales contributing to over 18% of Target's $106 billion in annual revenue, enhancing its e-commerce platform with Shopify's merchants is a sound strategy. Moreover, integrating Shopify's merchant products into Target's physical stores can drive foot traffic, potentially increasing in-store sales.

Shopify, on the other hand, stands to benefit from increased merchant sales, which translates into higher subscription revenues. The inclusion of merchants in Target's physical stores can also serve as a testbed for Shopify's future omnichannel capabilities. It's essential, however, to monitor the actual financial impact over the next few quarters to validate the initial optimism.

Rating: 1

• Partnership will bring growth opportunities for new brands and expand the assortment on Target Plus, the retailer's invite-only, third-party online marketplace
• Select Shopify merchants will feature both online and in Target stores nationwide

MINNEAPOLIS, June 24, 2024 /PRNewswire/ -- Target Corporation (NYSE: TGT) today announced a partnership with global commerce platform Shopify to offer a selection of its popular merchants and their products on Target Plus, the retailer's third-party, highly curated digital marketplace. The new partnership with Shopify will expand Target Plus through a hand-selected assortment of new and on-trend products and brands like True Classic, Caden Lane and more, giving consumers even more options to explore at affordable prices and with exceptional quality. Target also will be the first mass retailer to work with Shopify to bring select merchants' products into its physical stores in the months to come, offering shoppers even more new brands to discover. 

Shopify merchants in the U.S. can apply to sell online on Target Plus through Marketplace Connect — an app enabling merchants to seamlessly sell and manage orders on leading marketplaces like Target Plus. "Target Plus invites consumers to explore a curated collection of products from vendors we trust, so they can shop our assortment with confidence," said Cara Sylvester, executive vice president and chief guest experience officer, Target. "Our partnership with Shopify extends the breadth of thoughtfully designed and affordable items available to discover and enjoy as part of Target's distinctive mix of brands shoppers love." 

"It's table stakes for merchants to be everywhere customers are, and as the world's leading retail operating system, we make it easier and more accessible for brands to sell directly to their customers on the best channels," said Harley Finkelstein, president of Shopify. "Partnering with Target helps high-growth brands like Caden Lane and True Classic reach millions of new loyal customers and take their business to the next level."  

More on Target Plus  
Launched in 2019, Target Plus has helped consumers discover a thoughtfully selected assortment of new products that reflect the quality and value they expect from Target. The retailer's team of curation experts helps grow its assortment on Target.com quickly by adding trending, premium, direct-to-consumer and national brands consumers know and love. This continues today, as the Target Plus marketplace features more than 2 million products from brands like Ruggable, Crocs, Maui Jim, Timberland and more, ranging from home and sporting goods to apparel, from more than 1,200 partners chosen by Target's in-house team to complement its existing assortment.  

New brands, same amazing savings
Another compelling perk of shopping Target Plus brands on Target.com is that consumers can apply their favorite Target perks, like 5%* off with a Target Circle Card, free shipping with orders over $35, and free returns, in the same trusted environment they already know and love. 

About Target
Minneapolis-based Target Corporation (NYSE: TGT) serves guests at nearly 2,000 stores and at Target.com, with the purpose of helping all families discover the joy of everyday life. Since 1946, Target has given 5% of its profit to communities, which today equals millions of dollars a week. Additional company information can be found by visiting the corporate website and press center. 

*Restrictions apply. Subject to application approval and identity verification. See Target.com/CircleCard for program rules and details. 

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SOURCE Target Corporation

FAQ

What is the partnership between Target and Shopify about?

The partnership allows select Shopify merchants to feature their products on Target Plus and in physical Target stores, expanding the assortment of trendy and affordable products.

When was the Target and Shopify partnership announced?

The partnership was announced on June 24, 2024.

How can Shopify merchants sell their products on Target Plus?

Shopify merchants in the U.S. can apply to sell online on Target Plus through Marketplace Connect.

What benefits do consumers get from shopping Target Plus brands?

Consumers can enjoy perks like 5% off with a Target Circle Card, free shipping on orders over $35, and free returns.

What kind of products and brands are featured on Target Plus?

Target Plus features over 2 million products ranging from home goods to apparel from brands like Ruggable, Crocs, and Timberland.