I see that http://www.target.com/yahoophotos is live. It’s just a redirect to Yahoo photos – to a special URL, but (currently) without Target branding.
It turns out that Target is going to use Yahoo Photos as a co-branded site. At first I suspect Target stores will promote Yahoo Photos. In the fall you’ll be able to upload your digital photos to Yahoo and pick up the prints at Target.
Clicks and mortar, anyone?
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