Leaving longtime
partner Amazon in the dust, Target announced plans on Friday to assume responsibility for its own e-commerce operations by 2011.
"Amazon has been an important strategic partner
since we re-launched Target.com in 2001, and the strength of Amazon's technology and fulfillment services has been a contributing factor in Target.com's success," Steve Eastman, president of
Target.com, said Friday.
"However," Eastman added, "to deliver a customized multichannel 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."
The move represents a major loss for Amazon's e-commerce platform
business, which runs Web operations for third-party retailers. Without Target, Amazon's biggest enterprise customer will be UK-based Marks & Spencer.
In recent years, Amazon has lost other big
business customers, including Toys 'R' Us and the Borders book chain.
As a result, Amazon is seen to be shifting to a more middle-market strategy. For one, it is reportedly working on a secret
project code-named Vitamin C to build ecommerce tools for mid-sized retailers.
Amazon is also rumored to be eyeing an acquisition of Netflix, despite significant hurdles, including price and
state tax issues.
Previously, Target and Amazon extended their contract to 2011.
Despite their fated relationships, the two retailers have committed to work together during the next two
years to "optimize performance" of the existing platform and fulfillment services.
"We are grateful to have been able to work with Target for the last eight years, and we wish Target the very
best as they go forward," Sebastian Gunningham, SVP of seller services for Amazon.com, said in a statement.