E-Commerce Goes Bricks-And-Mortar

In yet another example of the convergence of e-commerce and traditional business, Target Corp., the operator of discount retail stores, recently entered into deals with Amazon and E*Trade. Under the Amazon deal, Amazon plans to open a virtual Target store offering thousands of consumer products on the Amazon web site later this fall. The arrangement is reportedly similar to those Amazon already has with store chains Toys 'R' Us and Circuit City. Target's deal with online brokerage E*Trade expands the existing relationship between those companies by allowing E*Trade to open additional retail financial service centers in Target stores. The companies already promote each other on their web sites and operate a co-branded web site.

"This is typical of the deals we see in the consumer space," notes Hughes & Luce technology lawyer Andre Brunel. "Companies are growing sales by expanding their access to consumers through both virtual and physical channels. In this case you see E*Trade, once a pure Interent play, establishing a physical presence, and Target, the bricks-and-mortar...