United States’ second biggest offline retailer Target Corp. is taking a distinct approach to amplify its online retail business.
The retailer will bring in third party brands to sell on its e-commerce platform, target.com. This is what its rivals, Walmart and Amazon would not want it to capitalise on.
Both national and specialty brands will be selling its products on the website. Target’s new initiative is called Target +. Markedly, its third-party sellers will be responsible for shipping and other costs which will make it easier for Target to improve margins of profit from online business.
“We see this as a long-term opportunity to drive profitable growth. This is intended to be a very curated and select group of products and brands. We are reaching out to the brands we want,” said Rick Gomez, Target Chief Marketing Officer and Chief Digital Officer.
The retailer has reported digital sales growth of over 25 percent in past 4 years. During the holidays, Target said online sales were up 29 percent.
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Whereas, Walmart had e-commerce growth of 40 percent last year. The rival Walmart has been adding variety to its website via acquisitions of Moosejaw, and others.
Also, shoppers purchasing from “Target +” will still get 5 percent off when they use a Target credit card and free shipping, the company said. The retailer will accept returns of items purchased from third-party sellers in its stores.