- 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 (NASDAQ:WFM) 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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