Amazon: Little Threat From Target, Says JP Morgan
Target’s (TGT) decision today to build out its e-commerce infrastructure won’t likely hurt Amazon.com (AMZN), writes J.P. Morgan (JPM) analyst Imran Khan in a note to clients. In fact, it could help.
Target announced today it would construct its own order-fulfillment services for its online sales, which totaled $1.8 billion last year, according to Khan’s estimate, signalling the end of its use of Amazon’s back-office fulfillment services, for which Amazon receives a fee.
“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 Target president Steve Eastman in a prepared statement.
