MINNEAPOLIS - Target Corporation (NYSE: NYSE:TGT) has teamed up with Shopify (NYSE:SHOP), a global commerce platform, to bring a handpicked selection of Shopify merchants to its curated online marketplace, Target Plus. This collaboration aims to broaden the variety of products available to customers, integrating new brands such as True Classic and Caden Lane into Target's existing assortment.
The partnership will also mark a significant move for Target as it becomes the first major retailer to introduce selected Shopify merchant products in its brick-and-mortar stores. This initiative is part of Target's strategy to offer consumers a wider range of high-quality, affordable products both online and in physical locations.
Shopify merchants based in the United States can now apply to feature their goods on Target Plus through Marketplace Connect, an app that streamlines the process of selling and managing orders on major platforms like Target's. Cara Sylvester, Target’s executive vice president and chief guest experience officer, emphasized the company's commitment to offering a curated product selection that customers can trust.
Harley Finkelstein, president of Shopify, highlighted the importance of merchants being accessible wherever their customers are and expressed confidence that the partnership with Target will enable brands to significantly expand their customer base and elevate their businesses.
Since its launch in 2019, Target Plus has been an avenue for consumers to discover new products that align with Target's standards of quality and value. The digital marketplace now boasts over 2 million products from more than 1,200 partners, including well-known brands like Ruggable, Crocs (NASDAQ:CROX), Maui Jim, and Timberland.
Shoppers on Target.com can also take advantage of Target's existing savings programs when purchasing Target Plus brands. These benefits include a 5% discount with a Target Circle Card, free shipping on orders above $35, and free returns, maintaining the convenience and trust associated with the Target shopping experience.
This partnership is based on a press release statement and is part of Target's broader mission to help families discover the joy in everyday life, a commitment that has been central to the company since its founding in 1946.
In other recent news, Target Corporation announced an increase in its quarterly dividend to $1.12 per common share, a 1.8% rise from the previous dividend. This marks Target's 228th consecutive dividend since its initial public offering in 1967. The company also reported mixed first quarter results, with a 3.7% decline in comparable sales but a 39% revenue increase compared to 2019, totaling over $24.5 billion.
Despite missing the anticipated earnings per share of $2.20 with a reported EPS of $2.03, Deutsche Bank (ETR:DBKGn) maintains a Buy rating for Target, albeit with a reduced price target from $209 to $190. In a recent development, Target along with other retailers like Walgreens and Walmart (NYSE:WMT) announced price reductions on essential items. The company's growth strategy includes significant store expansion and investment in its loyalty program, Target Circle.
InvestingPro Insights
As Target Corporation (NYSE: TGT) forges ahead with its strategic partnership with Shopify, the company's financial health and market performance continue to be of interest to investors and analysts alike. According to InvestingPro data, Target boasts a market capitalization of 67.61 billion USD, underlining its significant presence in the retail sector. Its Price to Earnings (P/E) ratio stands at 16.27, suggesting a potentially attractive valuation relative to its earnings.
Target's commitment to shareholder returns is evident in its impressive track record of raising dividends for 53 consecutive years, a testament to its stable financial performance and dedication to delivering value to its investors. In line with this, the company's dividend yield as of the previous year was 3.07%, providing a compelling income stream for dividend-focused shareholders.
An InvestingPro Tip worth noting is that 14 analysts have revised their earnings upwards for the upcoming period, signaling optimism about Target's future financial performance. Additionally, the company's low PEG ratio of 0.31 in the last twelve months as of Q1 2025 indicates that its stock price may be undervalued relative to its earnings growth, making it an intriguing option for growth-oriented investors.
For those considering an investment in Target, or for current shareholders looking to deepen their analysis, InvestingPro offers a comprehensive array of additional tips. There are currently 6 more InvestingPro Tips available for Target, providing valuable insights into the company's financial health, market position, and future prospects. To explore these further, visit https://www.investing.com/pro/TGT and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.