Big brick-and-mortar retailers are moving quickly to acquire emerging ecommerce platforms, picking up digital know-how, rapidly growing revenues and often a bit of cachet to boot.
In the latest move, Target is said to be is investing roughly $75 million in online mattress startup Casper, whose “bed-in-a-box” strategy is tailored to millennial tastes. The news was initially reported by Recode, which earlier had reported that Target had been in talks to buy all of Casper for $1 billion.
“With its partial acquisition of Casper, which followed partnerships with Bevel and Harry’s, Target is targeting younger consumers who have flocked online in recent years,” said eMarketer analyst Yory Wurmser.
“The cool factor Target had ten years ago is today captured by these niche brands, and Target is hoping to capture some of their luster with these investments and partnerships,” he added.