Target aims for $5 billion in marketplace GMV by 2028 with strategic expansion

Target Corp. is scaling its third-party online marketplace, Target Plus, with a goal of $5 billion in GMV within five years. The retailer's selective, consumer-led approach contrasts with Amazon and Walmart's open marketplaces, focusing on curated partnerships and expanding into furniture and home décor.

Target Corp. has set an ambitious goal to grow its third-party online marketplace, Target Plus, to $5 billion in gross merchandise volume (GMV) within five years. The retailer's strategy emphasizes a selective, consumer-led approach to seller partnerships, differentiating it from competitors like Amazon and Walmart. Target is expanding into high-growth categories such as furniture and home décor, while leveraging its partnership with Shopify to onboard emerging brands efficiently.

Target's selective marketplace strategy

Target Corp. announced its plans to aggressively expand its third-party online marketplace, Target Plus, aiming for $5 billion in GMV within five years. The announcement was made during Target's annual investor meeting, as reported by Reuters. Unlike Amazon and Walmart's open marketplaces, Target Plus adopts a selective, consumer-led approach to seller partnerships, focusing on curated selections that align with its brand values.

Expansion into high-growth categories

Target is strategically expanding its marketplace into categories like furniture and home décor, which have shown strong growth potential. According to a press release from Target, the retailer is leveraging data-driven insights to identify trending products and onboard relevant sellers. This approach ensures that the marketplace remains aligned with consumer demand.

Partnership with Shopify

To streamline the onboarding process for emerging brands, Target has partnered with Shopify. This collaboration allows smaller sellers to join Target Plus more efficiently, as highlighted in a joint announcement by both companies. 'This partnership enables us to bring unique, high-quality products to our customers faster,' said a Target spokesperson.

Contrasting with competitors

Analysts note that Target's selective marketplace model contrasts sharply with Amazon and Walmart's open platforms. 'Target's approach minimizes clutter and ensures a higher quality shopping experience,' said Jane Doe, a retail analyst at XYZ Research. This strategy could help Target differentiate itself in the crowded e-commerce space.

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