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Amazon: Little Threat From Target, Says JP Morgan

in News on August 7, 2009 at 2:37 pm PT

Target’s decision today to build out its e-commerce infrastructure won’t likely hurt Amazon.com, writes J.P. Morgan 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.