Friday, August 7, 2009
Target plans to split with Amazon.com
According to the Minneapolis/St. Paul Business Journal, Target plans to split operations from Amazon.com.
Target, which had outsourced much of its e-commerce technology and fulfillment services to Amazon.com since 2001, issued a press release today saying that it plans to launch and manage its own Target.com platform beginning with the holiday season in 2011.
“To deliver a customized multi-channel 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,” said Steve Eastman, president of Target.com.
To tell you the truth, I never really understood the Target/Amazon relationship. My assumption was that Target engaged them in partnership since they didn't have the capabilities to develop a robust web site on their own. It sounds like they do have those capabilities now, so it makes sense for them to bring everything in-house.