Target is expanding its third-party marketplace platform by partnering with e-commerce specialist Shopify, which will allow it to better compete with Walmart and Amazon.
Target Taps Shopify to Expand Third-Party Marketplace
On Monday, June 24, the two companies announced that Shopify merchants could apply to be part of Target Plus, a third-party marketplace run by the retail giant. This marketplace allows retailers to sell and handle orders on the commerce platform.
With this partnership, Target became the first big-box shop to carry items made by Shopify merchants. Stores like True Classic and Caden Lane are among the first to have their Shopify products shown at Target.
In a statement, Target executive vice president and chief guest experience officer Cara Sylvester said: "Target Plus invites consumers to explore a curated collection of products from vendors we trust, so they can shop our assortment with confidence."
Launched in 2019, Target Plus provides customers a wide range of items from exclusive brands, including Crocs, Maui Jim, Timberland, and Ruggable. However, competitors like Walmart, eBay, and Amazon outsell the store.
Target's third-party marketplace currently has 1,200 merchants, which is a small number compared to Walmart's 135,000 and Amazon's almost 2 million selling partners.
Target Reports Dismal Quarterly Results
According to TechCrunch, this partnership comes after Target reported disappointing quarterly results, notably a 3.7% drop in comparable sales.
For the fourth consecutive quarter, the company's comparable sales have decreased. Moreover, in the first quarter of 2024, Target's sales were down 3.2% year-over-year.
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