Retail giant Target (NYSE:TGT) is teaming up with eCommerce platform Shopify (NYSE:SHOP) to boost its online marketplace.
Details of the Partnership
Under the partnership, a selection of Shopify’s merchants and their products will be featured on Target’s third-party marketplace, Target Plus. The deal promises to expand the range of products available. Notably, Target will become the first mass retailer to offer Shopify merchants’ products in its stores.
Target Plus is an invite-only online marketplace. This partnership could significantly boost visibility and revenue for multiple small brands and stores that use Shopify. Currently, Target Plus features over two million products from more than 1,200 partners.
While Target has more than doubled the number of merchants and products on its marketplace over the past year, it still retains an element of exclusivity through its invite-only strategy. Additionally, Target focuses on offering curated and trending product assortments, rather than trying to offer something of everything.
Target Is Still Playing Catch-Up
Despite these efforts, Target’s online presence pales in comparison to Amazon (NASDAQ:AMZN) or Walmart (NYSE:WMT). Amazon had around two million merchants on its platform in 2022. While Walmart’s merchant numbers are not disclosed, the retailer offers nearly 420 million products on its marketplace, according to Bloomberg.
What Is the Price Forecast for TGT Stock?
The announcement of the Shopify deal has pushed Target shares marginally higher in the premarket session today. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average TGT price target of $179.35.
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