Analyst Predicts Amazon Will Buy Target This Year
Amazon.com's recent acquisitions have redefined the retail landscape. However, according to a well-known industry analyst, its largest acquisition could happen in 2018. Loup Venture Co-Founder Gene Munster believes Amazon will acquire Target this year. “Target is the ideal offline partner for Amazon for two reasons, shared demographic and manageable but comprehensive store count,” Munster wrote in his report, noting both companies focus on mothers and families. “Getting the timing on this is difficult, but seeing the value of the combination is easy.” Amazon's $13.7 billion acquisition of Whole Foods shook up the retail industry in the summer of 2017.
Total Retail's Take: This could be a complete game changer. If Munster's prediction comes true, we could see a very different retail landscape by late 2018. Like a lot of retailers, Target had a challenging 2017, and it could be looking for potential ways to give value to its shareholders. By acquiring Target, Amazon would gain access to new audience and a nationwide brick-and-mortar footprint to help further its efforts to compete with Wal-Mart.
