Online outlets will claim 10 percent
of total U.S. retail sales by 2008.
The extension comes nearly two years after the companies originally struck theiron Sept. 11, 2001. The agreement allows Amazon to power e-commerce services such as online order fulfillment and customer service for Target.com and its online properties MarshallFields.com and Mervyns.com.
"As a result of our association with Amazon.com, we increased sales significantly year-over-year for our online properties in the first two quarters of 2003, and look forward to continuing this success," Target Vice Chairman Jerry Storch said in a statement.
The agreement extends the deal's lifespan to 2008.
Over the past few years Amazon has tightened its relationship with offline retailers, which were once expected to become victims of Amazon's success. Amazon has similar deals to power e-commerce functions for retailers such as Office Depot, Circuit City, Toys "R" Us and Borders.
Amazon last year alsoby teaming with offline retailers such as Gap, Eddie Bauer and Nordstrom.
Last quarter Amazon reported a net loss of $43 million, or 11 cents a share, on revenue of $1.1 billion. That's an improvement from a net loss of $94 million, or 25 cents a share, on $806 million in revenue the year before.