July 16, 2024

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Target taps Shopify to add sellers to its third-party marketplace

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Target is turning to Shopify to add new and trendier brands to its website.

Starting Monday, the Minneapolis-based discounter said companies that work with Shopify can apply to join Target Plus, its third-party marketplace. Some of Shopify’s customers are smaller or up-and-coming brands that use the e-commerce platform to build and operate a website.

Target and Shopify did not disclose financial terms or the length of the deal.

In an interview with CNBC, Target Chief Guest Experience Officer Cara Sylvester said Shopify will help the retailer discover hot items and quickly make them available for Target’s online shoppers. She said Target plans to put some popular items discovered through the Shopify deal on store shelves.

Target’s marketplace creates a “halo” and is “an accelerant to the total business,” she said. Sylvester added that as the company expands its online assortment and adds eye-catching merchandise, customers tend to visit its website more frequently and buy from both marketplace sellers and Target’s own brands.

The big-box retailer is trying to get back to sales growth as consumers buy less discretionary merchandise, with the discounter lagging behind grocery competitors like Walmart. Target has posted four consecutive quarters of declining comparable sales, and its overall sales have fallen in three of the past four quarters.

The company has struggled to grow its e-commerce business, too. Target’s digital sales grew 1.4% in the first quarter, the first such increase in more than a year.

Company leaders said in May that the retailer is on track to return to sales growth in the second quarter, but that’s partially due to its weak performance year over year. For the full year, Target said it expects comparable sales will range from flat to up 2%, with adjusted earnings per share of $8.60 to $9.60. 

Shares of Target have underperformed the broader stock market. As of Friday’s close, the company’s stock is up about 2% compared with the S&P 500’s nearly 15%…

2024-06-24 06:19:26

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