TARGET REPORTED IN DEAL WITH QVC
Byline: David Moin
NEW YORK — QVC is about to get its biggest fashion order ever, and not from a home shopper. It’s coming from Target, the Minneapolis-based discount giant.
Sources told WWD that in a surprising, precedent-setting industry liaison, Target will tap into QVC’s exclusive fashion assortment, sold to the nation via the 24-hour QVC home shopping TV channel and via qvc.com.
At the get-go, Target will buy one fashion line to sell in its discount stores. It could not be learned what brand or category will be bought. QVC’s biggest single category is jewelry. The deal will help the $37 billion Target further build its exclusivity and sales, while potentially building enormous exposure and volume gains for the $2.5 billion QVC.
If the arrangement proves to be successful, Target could eventually buy more QVC product or build an even bigger partnership.
Neither company would comment on the reports.
However, WWD sources said negotiations culminated last week and that an announcement could come any day.
This is a most unusual arrangement for the companies. QVC has never before wholesaled any of its fashion products, and it’s only the second time QVC has been involved in wholesaling at all. The West Chester, Pa.-based online and TV home shopping company does license its Northern Nights luxury linen and comforter collection.
QVC was founded in June 1986 by Joseph Segel, and began operations in November 1986. QVC broadcasts live 24 hours a day, 364 days a year, and introduces 300 new products every week to viewers in 79 million homes across the U.S.
Target Corp. opened its first Target store in 1962.