Monday, August 10, 2009

Retailers shift focus to e-commerce... where retail still has a pulse.

According to the Wall Street Journal, US retail powerhouse Target won't renew its contract with Amazon when it expires in 2011. Target had been outsourcing its e-commerce operations (software, hosting, call center, logistics...) to Amazon since 2001...

As e-commerce grows bigger in the retail market, and as it is the only distribution channel with promises of growth, major retailers finally realize online retail is no longer an afterthought. They want to regain control over it and integrate it with their store channel, in order to create multi-channel offerings for their customers, and get a piece of the online cake before it's too late.

Target is the latest to end their contract to outsource their e-commerce operations at Amazon, after Borders and Toys 'R Us.

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