This actually gives Amazon a backdoor entrance to CVS/Caremark medication distribution. You see CVS has been slowing down building new free standing locations because they've taken over all of Target's pharmacy.<p>If Amazon does actually buy Target I would look at CVS start delivering prescriptions and equipment directly to homes via Amazon's distribution system. This is yet another reason not to go to a competitor.<p>I would also look at all Targets to become order pick-ups for rural and high crime areas.
For what purpose? Amazon's goal is to kill off traditional retail, as far as I can tell. Big box stores like Target are failing because their business model can't compete.<p>Amazon already bought Whole Foods, which gives them a large enough physical presence to do whatever it is they're going to do with it. Integrating that business with the rest of Amazon will already take years- why complicate it further?<p>My guess? Gene Munster owns some stocks in Target and wants to offload them at a price slightly higher than what it's currently at.
If Amazon is going to make a high dollar retail acquisition, I think Costco makes a lot more sense than Target. True warehouse stores that could be used for distribution, high income customers who don't mind paying a subscription fee and it is already headquartered in the Seattle area.
what's with all these analysts predicting mega mergers today?<p>> "Citi analysts see 40% chance Apple will buy Netflix"<p>Yeah, right. It's baseless cable news headline-bait garbage.
I was in Whole Foods yesterday and was half-expecting to see USB cables for sale between the tomatoes and the oranges—the real-world version of Amazon's product recommendations... :)<p>But then that got me thinking that Whole Foods just might be their first foray into retail and I could see them making other retail acquisitions in various niches to eventually cover a wide spectrum of goods.<p>Target seems more questionable as this would duplicate the logistic systems they already have.
Typical click-bait; An extremely bold prediction with an article that takes less than two minutes to read with a re-direct to another Bloomberg article about a less-sexy potential Amazon acquisition.
Gene Munster clearly does not understand how Amazon works. They dominate on efficiency which comes with scale. I do not think they want to the brick and mortar route, but could be wrong.<p>His analysis is flawed unless they can pick up Target cheaper than they would be able to custom fit/design their own stores.<p>I think they would want to own the least amount possible, but they may use stores as storage units if they decide to get into the logistics game.<p>The Commercial Real Estate in the Retail sector is getting whacked.
(In english, it is getting cheap as real estate owners are willing to accept less rather than let a huge building go vacant and receive no income.) With that being said, they will drop a tenant if the likes of Amazon came knocking. The only issue is the leverage that Amazon has may or may not be beneficial for the owner of the real estate.<p>(<a href="http://www.businessinsider.com/store-closures-in-2018-will-eclipse-2017-2018-1" rel="nofollow">http://www.businessinsider.com/store-closures-in-2018-will-e...</a>)
(<a href="https://www.usatoday.com/story/money/2017/12/20/here-26-retailers-and-apparel-companies-most-risk-2018/950328001/" rel="nofollow">https://www.usatoday.com/story/money/2017/12/20/here-26-reta...</a>)<p>With interest rates rising in the U.S, it will put more pressure on the retail sector for those whose leases are tied to expensive financing and did not lock in lease/rates.<p>With all this being said, I see this as very unlikely.
It makes sense in a way.<p>Retail is very similar to record companies or the movie industry. They've failed to innovate solely because they got lazy. They took for granted their position in the market.<p>A good position too. I mean, if you make believe the internet isn't a threat, which top business people most likely did, then I can easily see brick-and-mortar-rules-all mentality lulling top execs to sleep. Meanwhile, Amazon etc took over from a completely different angle, utilizing on-demand and internet tech.<p>An acquisition from traditional retailers may be appealing.
This has been going around the Minneapolis subreddit and development forums in the last week or so, with a lot of doom and gloom about one of our biggest HQs moving out of the city.<p>I guess I could see why Amazon would want to do it, but I'm also a little torn on what it would do locally if Amazon didn't end up locating HQ2 here while pulling Target HQ somewhere else.<p>On the other hand, Loup Ventures is <i>also</i> based here, and I wouldn't be surprised if this is just Gene Munster trying to get press by stirring up shit.
I'd expect someone other than Amazon to buy Target (if anyone does), and stories like this will make the price seem more justifiable as a defensive move.