Target Corporation (TGT – Free Report) may be next on Amazon's (AMZN – Free Report) buyout list. This is what Loup Venture co-founder Gene Munster predicts, per media reports. The forecast made by the famous tech analyst is enough to shake the retail industry, which has certainly been facing the brunt of heightened online competition, lower footfall and changing consumer spending patterns.
Munster highlighted that given “shared demographic and manageable but comprehensive store count” Target remains a perfect choice for Amazon. Munster added that if the acquisition takes place, Amazon may have to shell out $41 billion, which reflects a premium of approximately 15% to Target's current value. Shares of Target were up 3.7% during the trading session yesterday.
If the prediction comes true, this would be Amazon's second major buyout after Whole Foods, in its quest to become a dominant player in the retail industry. With the acquisition Amazon's store count would jump to roughly 2,300, including Whole Foods' approximately 470 stores but will still be lower than Wal-Mart's (WMT – Free Report) mammoth count of more than 11,600 stores. Industry experts believe that the amalgamation between online marketplace and physical stores could bring a massive change in the retail industry going forward.
Well only time will tell, whether Amazon acquires Target. But for now the latter has undertaken strategic endeavors to fast adapt to the ultra-competitive retail environment.
