Google Inc (GOOG) and Target Corporation (TGT) Team Up to Take on Amazon.com, Inc. (AMZN)

How will it affect retailers?
If Google Shopping Express flourishes, it could become a way for retailers to experience somewhat of a renaissance.

Target Corporation (NYSE:TGT) might not be the first company that comes to mind when one thinks of retailers threatened by online shopping, but Target has been hostile to Amazon for some time. For example, Target pulled Amazon’s Kindle devices off its shelves last May.

In partnering with Google Inc (NASDAQ:GOOG), Target is elevating that hostility to the next level, competing directly with Amazon for online sales. But it might not just be Amazon’s customers Target would be competing for.

Say a consumer pays the subscription fee for Google Shopping Express, and say they want to purchase standard household goods like shampoo, paper towel and garbage bags. Rather than go to Target Corporation (NYSE:TGT), they might choose to purchase these goods at a rival store like Wal-Mart Stores, Inc. (NYSE:WMT). But with the money already sunk into a subscription for Shopping Express, they opt to buy the goods through Google, and thus Target gets the sale.

In time, partnering with Google Inc (NASDAQ:GOOG) might be a way for retailers to compete against each other.

What does it mean for Amazon shareholders?
Should Amazon shareholders dump their shares because of Shopping Express? Probably not.

But for once, Amazon will face real competition. To be fair, Amazon isn’t the only online shopping website, but it’s certainly the most dominant. To date, the competition Amazon has faced — specialty sites like Newegg, auction sites like eBay Inc (NASDAQ:EBAY) — haven’t had a significant effect on Amazon’s core business. But Google Shopping Express could change that.

Investors in Amazon, Google and major retailers should be aware of the changes taking place. Above all, technology continues to shake up retail — presenting opportunities to create new winners and losers.

The article Google and Target Team Up to Take on Amazon originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

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