September 12, 2001, 12:00 AM

Target joins Amazon; Amazon will run Target.com, Target will sell at Amazon

Target Corp. and Amazon have reached an agreement under which Target will open a store at Amazon.com that Amazon will run and Target has agreed to employ Amazon’s e-commerce systems at Target.com.

Kurt Peters

Executive Editor

Amazon.com is extending its clicks-and-bricks strategy further. Target Corp. and Amazon have reached an agreement under which Target will open a store at Amazon.com and Amazon will run the store. It will feature thousands of apparel, home, electronics and jewelry products from Target, the companies announced.

In addition, Amazon will provide its complete solution of e-commerce technology services, order fulfillment, and customer service for Target’s current online properties, including target.com, MarshallFields.com, Mervyns.com and GiftCatalog.com, beginning next summer. All of these online properties will continue to be owned by Target.

“Target.com has experienced tremendous growth in the past twelve months and we believe this new Target store at Amazon.com provides another opportunity to expand our business,” said Jerry Storch, vice chairman of Target. “We are excited to be working with Amazon.com and believe this alliance will further strengthen our brand and deepen our relationships with our guests.”

“We’re always looking to expand selection for our customers, and this strategic partnership with a leading retailer like Target hits the bull’s-eye,” said Jeff Bezos, founder and CEO of Amazon.com. “In time for the holiday shopping season, and then continuing in 2002, Amazon.com will have jewelry, apparel, and more home living and electronics products available for our customers, thanks to the new Target store at Amazon.com and a great Target gift line-up.”

Under the five-year strategic alliance, Amazon.com will receive per unit fees and annual fixed fees.

Amazon already has an array of deals with Toys R Us, Borders and Circuit City.

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