Amazon this year may further advance to the offline store.
Well-known analyst Gene Munster (Jean & middot; Munster) recently predicted that Amazon will acquire the US chain hypermarket Target (Target) in 2018. Gene Munster is co-founder of Loup Ventures, a leading US venture capital firm, as part of "2018 Eight Technology Forecasts."
Munster said that Amazon believes the future of the retail industry is primarily a combination of online and offline, and Target has decent demographics and a wide range of stores, making Amazon an ideal offline partner.
Founded in 1982, Target is currently the second-largest retailer in the United States, ranking 38th in the Fortune 500 rankings in 2017. With Target, Amazon will have about 2,300 stores, enabling it to compete offline with nearly 12,000 stores in Wal-Mart.
Target mom consumer concern, it is also the object of development in the focus of Amazon. Munster said Amazon has been actively pursuing the home market for years, adding child-friendly content to Prime videos and adding promotions to moms.
Neither Target nor Amazon responded to this prediction.
In the past, Target and Amazon have been in a confrontational manner in the media. Just last month, Target also announced the acquisition of Shipt, the same day delivery service, for $ 550 million and plans to provide daily delivery of daily necessities, household items, electronics and other products through Shipt starting in early 2018 and on By the end of the year 2019, the same day delivery service will be provided for all major product categories. Target also announced a cut in the price of thousands of items after Amazon cut the price of its best-selling omnibus supermarket in August. These messages are interpreted by the media as the two are in competition.
But Target also seems to need external help. In the context of rival Wal-Mart and Amazon acquisition of other retailers in order to deepen omnichannel influence, Target's development in the past few years is still focused on the impact and performance decline in profitability and internal growth. Target sees Target as a relatively weaker player in food and Target's department store net profit plunged 21% in the third quarter of 2017, with news of plunging stock prices on numerous occasions. Under such circumstances, to accept the Amazon acquisition may not be impossible.
In recent years, Amazon has been exploring offline retail methods, in addition to 13.7 billion acquisition of Whole Foods, formally involved in offline retail, but also one after another physical bookstores, unattended retail store attempts. It is also considered the most potential revenue growth point for Amazon to explore the most important grocery market for offline consumption.