Target Taps Shopify To Add Sellers To Its Third-party Marketplace

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Starting Monday, the Minneapolis-based discounter said companies that work with Shopify can apply to join Target Plus, its third-party marketplace. Some of Shopify's customers are smaller or up-and-coming brands that use the e-commerce platform to build and operate a website.

In an interview with CNBC, Target Chief Guest Experience Officer Cara Sylvester said Shopify will help the retailer discover hot items and quickly make them available for Target's online shoppers. She said Target plans to put some popular items discovered through the Shopify deal on store shelves.

The company has struggled to grow its e-commerce business, too. Target's digital sales grew 1.4% in the first quarter, the first such increase in more than a year.

Company leaders said in May that the retailer is on track to return to sales growth in the second quarter, but that's partially due to its weak performance year over year . For the full year, Target said it expects comparable sales will range from flat to up 2%, with adjusted earnings per share of $8.60 to $9.60.

Shares of Target have underperformed the broader stock market. As of Friday's close, the company's stock is up about 2% compared with the S⁘P 500's nearly 15% increase. Its stock price of $146.13 is also well below the highs it hit during the Covid pandemic years, when it topped $260.

Shopify could also use a boost. Shares tumbled after its earnings report in May and are down about 17% so far this year.