Amazon May Buy Target in 2018, Predicts Tech Analyst Gene Munster
Two favorites could be teaming up this year.
After Amazon’s decision to acquire Whole Foods in 2017, the start of a new year has us wondering what the retailer may have planned for the 12 months ahead. While analysts have thrown out many predictions about what companies the mega retailer could have its eye on next, the prediction of one particularly influential analyst has caught the attention of many. According to Gene Munster, the co-founder of Loup Ventures and a former Apple analyst, Amazon will acquire Target in 2018, Bloomberg reports.
In his report of eight predictions for the tech industry posted on the Loup Ventures website, Munster explains why Target feels like a match for the online retailer. “Amazon believes the future of retail is a mix of mostly online and some offline. Target is the ideal offline partner for Amazon for two reasons, shared demographic and manageable but comprehensive store count,” Munster explains. He writes that Target’s focus on mothers makes it a fit for Amazon, a company that often tries to appeal to the same demographic with targeted Prime promotions and by adding kid-friendly content to Prime Video.
The acquisition could also help Amazon in its attempt to compete with Walmart, Munster points out. He says that Amazon’s approximately 470 retail locations following the acquisition of Whole Foods still falls way behind Walmart’s whopping 11,695 locations globally. If Amazon were to acquire Target stores, the deal would boost Amazon’s total stores up to about 2,300. Munster argues that Amazon’s decision to buy Whole Foods’ stores and its testing of the Amazon Go retail concept are proof of the company’s interest in establishing at least some offline retail presence.
While the potential acquisition is purely speculative at this point, we can’t help but dream about one day being able to Amazon Prime our favorite Target beauty essentials and Joanna Gaines’ home decor line. We may never brave the cold again.