Target Built a Digital Oasis for New Parents. Now Comes the Lawsuit

  • Retailer accused of reverse-engineering virtual showroom tool
  • Israeli startup claims copyrights infringed, wants all profits
Photographer: Christopher Dilts/Bloomberg
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Soon-to-be parents wanting to scout stores for the most stylish cribs, diaper-changing tables and rockers to accent their newborns’ bedrooms were stymied in May 2020.

At the time, pandemic-induced restrictions had made it impossible for shoppers to see and touch anything. Meanwhile, Target Corp., like most retailers, was struggling to get a read on shifting shopping patterns. More of the Minnesota-based company’s sales were coming from lower-margin food and household essentials than from the endless aisles of home decor America’s hippest retail chain had gotten consumers hooked on over the last decade.