Is Target (TGT) Next On Amazon’s (AMZN) Acquisition List?

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.

In fact, retail is no more restricted to brick-&-mortar. The scenario has drastically changed with the advancement of technology and digital transformation that are playing key roles. Consumers now prefer to shop online from the comfort of their homes rather than hopping from one store to another. Nevertheless, this transition has persuaded retailers to come up with innovative ways to market products, and Target is no exception to the trend.

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.