July 21, 2024

Target Corporation TGT has announced an exciting partnership with Shopify, a leading global commerce platform. This collaboration aims to expand Target Plus, TGT’s third-party, highly curated digital marketplace, by incorporating a selection of popular merchants and their products from Shopify. This strategic move will introduce consumers to new, on-trend products and brands, enhancing the shopping experience with more affordable and high-quality options.

Target Plus, launched in 2019, has been a platform wherein consumers can discover a thoughtfully selected assortment of new products that reflect the quality and value they expect from Target. The marketplace currently features above 2 million products, from home goods and sporting goods to apparel, sourced from more than 1,200 partners. These partners include renowned brands, such as Ruggable, Crocs, Maui Jim and Timberland.

 

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New Brands & Products

With this new partnership, Target Plus will now offer products from high-growth Shopify merchants like True Classic and Caden Lane. These brands are known for their premium, direct-to-consumer products that align with TGT’s commitment to affordability and quality. The inclusion of these brands will diversify the product range available on Target Plus, providing customers with more choices that cater to current trends and preferences.

In a significant first for mass retailers, Target will also bring select products from Shopify merchants into its physical stores in the coming months. This initiative will allow shoppers to discover brands in stores, offering a unique blend of online and offline shopping experiences. The integration is set to enhance the accessibility of trendy and high-quality products for Target’s loyal customer base.

Shopify merchants in the United States can apply to sell on Target Plus through Marketplace Connect. This app facilitates seamless selling and order management on leading marketplaces like Target Plus. It streamlines the process for merchants, enabling them to reach a broader audience and manage their operations efficiently.

Benefits for Consumers

Target Plus offers several perks for consumers. Shoppers can enjoy the same benefits they are accustomed to with Target, such as 5% off with a Target Circle Card, free shipping on orders above $35 and free returns. This consistency ensures that customers can shop with confidence, knowing they are getting the best value and service.

Cara Sylvester, Target’s executive vice president and chief guest experience officer, said that Target Plus allows consumers to explore a handpicked selection of products from trusted vendors, enabling them to shop the range with confidence. Sylvester added that the collaboration with Shopify enhances the variety of thoughtfully designed and affordable items available as part of Target’s unique mix of beloved brands.

Harley Finkelstein, president of Shopify, highlighted the significance of this partnership for merchants. He noted that as the world’s leading retail operating system, Shopify simplifies and increases opportunities for brands to sell directly to their customers through the best channels. He added that partnering with Target enables high-growth brands like Caden Lane and True Classic to reach millions of new loyal customers and elevate their businesses to the next level.

Wrapping Up

This partnership between Target and Shopify marks a milestone in retail, blending online and offline shopping experiences to benefit consumers and merchants. By expanding Target Plus and integrating Shopify merchants into physical stores, Target continues to innovate and enhance its offerings, solidifying its position as a leading retailer committed to quality, affordability and customer satisfaction.

We note that shares of this Zacks Rank #3 (Hold) company have gained 11.3% in the past year compared with the industry’s 37.9% growth.

Key Picks

Here, we have highlighted three better-ranked stocks, namely The Gap, Inc. GPS, Abercrombie & Fitch Co. ANF and Walmart WMT.

Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Gap’s fiscal 2024 earnings and sales indicates growth of 21.7% and 0.2%, respectively, from fiscal 2023. GPS has a trailing four-quarter average earnings surprise of 202.7%.

Abercrombie is a specialty retailer of premium, high-quality casual apparel. The company flaunts a Zacks Rank of 1 at present. ANF delivered a 28.9% earnings surprise in the last reported quarter.

The consensus estimate for Abercrombie’s current fiscal-year earnings and sales indicates year-over-year growth of 47.3% and 10.4%, respectively. ANF has a trailing four-quarter average earnings surprise of 210.3%.

Walmart, which operates a chain of hypermarkets, discount department stores and grocery stores, currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for Walmart’s current financial-year sales and earnings implies growth of 4.2% and 9% from the year-ago period’s actuals. WMT has a trailing four-quarter earnings surprise of 8.3%, on average.

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Target Corporation (TGT) : Free Stock Analysis Report

Walmart Inc. (WMT) : Free Stock Analysis Report

Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report

The Gap, Inc. (GPS) : Free Stock Analysis Report

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