Target Teams Up with Shopify to Boost Sales on its Third-Party Marketplace, as the Retailer Faces a Drop in Stock Performance

Target has struck a deal with Shopify to allow Shopify merchants to apply to sell products on Target's third-party marketplace, Target Plus. Third-party marketplaces allow retailers to expand product selection without spending on inventory while earning commissions from third-party sales. Target is struggling to revive sales growth amid declining consumer spending on discretionary items and stiff competition from grocery chains like Walmart. The retail giant has had four consecutive quarters of declining comparable sales and overall sales drops in three of the past four quarters. Target's stock has underperformed compared to the broader market, with only a 2% increase versus the S&P 500's 15% rise, and remains significantly below its peak during the Covid pandemic.