Target Corporation (NYSE:TGT) is gearing up to launch a new version of their website next week. The company believes that the new website will increase their sales. The new website has been in development for two years and it will make shopping easier with a faster check-out.
Over the last decade, Target outsourced their online operations to Amazon, Inc. (NASDAQ:AMZN). Amazon.com provided software for Target.com to run their website and ran the call center for most of Target’s warehouse operations.
Target’s online operations represented only a few percentage points of the company’s 2010 annual revenue according to Target CEO Gregg Steinhafel.
Target is currently the 22nd largest Internet retailer in the U.S. with $1.33 billion in sales last year. Target’s 2010 revenue was $65.8 billion. As a comparison, Wal-Mart’s Internet retail sales is sixth largest with an estimated $4.4 billion. Amazon.com is #1 with $12.95 billion in sales last year.
The best part of Target’s new set-up is that over 800,000 products will have free shipping.
[Wall Street Journal]