Whole Foods-Target store partnership idea teed up

|By:, SA News Editor

Bernstein suggests that Whole Foods Market (NASDAQ:WFM) should strike a store-within-a-store partnership with Target (NYSE:TGT), with the two chains seen having some strong customer overlap.

The investment firm thinks a WFM-TGT deal could drive sales growth at Whole Foods and give Target a differentiated grocery business from Wal-Mart.

It's possible that a Target play could also quiet some of the criticism aimed at Whole Foods management from Wall Street analysts and activist investors like Jana Partners. For Target, shareholders are looking for any catalyst to bring back buyers after a 1-year 35% slide in share price.

Source: Bloomberg