Loup Ventures analyst Gene Munster continues to believe that Amazon (NASDAQ:AMZN) acquiring Target (NYSE:TGT) would make sense as the company looks to rapidly grow its physical retail presence to compete head on with Walmart (NYSE:WMT).
"Amazon’s core retail competency lies in logistics (not merchandising). The Amazon Go initiative, for example, works so well because it leverages logistics in physical retail," writes Munster.
While Amazon operates 107 of its own physical retail stores (including Amazon Go, Amazon 4-star, Amazon Pop-Up, and Amazon Books) and has ~500 Whole Foods Market stores in its portfolio, the Seattle giant would still by dwarfed by Walmart's +11K stores even after it does set up the 3K cashier-less stores as has been reported.
In full disclosure, Munster postulated something similar about a year ago, but adding intrigue to the new note is the 24% drop in Target's share price over the last 90 days.
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