Target Corp will soon start selling a new electronic reader that competes with Amazon.com Inc's Kindle and Barnes & Noble's Nook.

The iriver Story HD is the first e-reader to be fully integrated with Google Inc's eBooks platform, Target said in a statement on Monday. It will cost $139.99 and goes on sale July 17, the company added.

During the first quarter, Barnes & Noble's Color Nook helped the company take the lead in the e-reader market for the first time, according to technology data company IDC.

Amazon's Kindle was second, but the lack of a color offering has clearly impacted the company's previous dominance in the eReader market, IDC said in a report last week.

IDC forecasts 16.2 million e-readers will be shipped this year worldwide, a 24 percent increase over 2010.

Target sells the Kindle at prices ranging from $114 to $189 depending on the version. It also sells e-readers by Sony, Kobo and Pandigital, along with Apple Inc's iPad tablet computer, according to the retailer's website.

(Reporting by Alistair Barr; editing by John Wallace)

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