Target has bought outdoor lighting and furniture online retailer Outdoor Brands to expand its outdoor shopping platform, Target’s first major acquisition of outdoor lighting equipment and furniture.
Target bought Outdoor Brands in 2014 for about $2.2 billion.
The purchase is expected to close in the fourth quarter of 2019.
The deal was announced in a statement by Chief Executive Brian Cornell.
“We’re building an all-in-one online shopping experience with Target, and it’s an important part of that,” he said.
The acquisition is a departure for Target from the retailer’s traditional focus on its retail business.
Target previously had focused primarily on its grocery and pharmacy stores, which have struggled to grow in the last decade.
“Our goal is to be the premier online shopping destination for outdoor furniture,” Cornell said.
Target is targeting the retail space with outdoor lighting, outdoor solar lights and indoor outdoor lighting.
“Target is investing in the best in outdoor lighting solutions and outdoor lighting products for its stores, so we are going to be one of the leaders in this space going forward,” Cornell added.
The new deal will help Target broaden its online shopping offerings to include outdoor lighting as well as indoor lighting, which it has previously focused on for its grocery stores.
It is also investing in outdoor solar lighting, the company said.
