- The Loup Ventures analyst Gene Munster predicts Amazon will acquire Target in 2018.
- Target would be a powerful tool for Amazon in its quest to get mums hooked on its Prime services, according to Munster.
- A union would also enable Amazon to leverage Target’s 1,834 US stores in its battle with Walmart, which has more than 4,700 US stores.
Amazon could be eyeing Target as its next major retail acquisition, according to one influential tech analyst.
“Amazon will acquire Target,” Loup Ventures’ Gene Munster wrote on Monday in a post on his predictions for 2018.
“Amazon believes the future of retail is a mix of mostly online and some offline,” he added. “Target is the ideal offline partner for Amazon for two reasons, shared demographic and manageable but comprehensive store count.”
Target shares jumped 3% in early trading Tuesday.
Target would be a powerful tool for Amazon in its quest to get mums hooked on its Prime services, according to Munster.
“Target’s focus on mums is central to Amazon’s approach to win wallet share,” he wrote. “Amazon has, over the years, aggressively pursued mums through promotions around Prime along with loading Prime Video with kid-friendly content.”
A union would also enable Amazon to leverage Target’s US 1,834 stores in its battle with Walmart, which has been using its more than 4,700 US stores to lure customers with in-store discounts and other perks.
Amazon made it clear last year with its $US13.7 billion purchase of Whole Foods that it plans to compete offline, in the physical retail world.
Buying Target would bring Amazon’s US store count to more than 2,300 – about half of Walmart’s.
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