If Amazon does actually buy Target I would look at CVS start delivering prescriptions and equipment directly to homes via Amazon's distribution system. This is yet another reason not to go to a competitor.
I would also look at all Targets to become order pick-ups for rural and high crime areas.
CVS also has horrendous customer service issues. A few months ago, Walmart ran out of one of the several medications I take, and after the shortage lasted long enough, I had my doctor transfer just that script to CVS. It was hell. I was constantly innundated by calls from CVS daily telling me it was time to refill my prescription. Even if I just refilled it, I would start getting the calls a few days after I picked it up. I'm a little bit disappointed in my doctor for even giving my phone number to these people (Walmart doesn't have my phone number and never asked for it).
I had to call CVS corporate several times to get them to stop calling me every day. The first couple of times, they told me they took my number off, and it was a blatant lie. The last time I called, they said they took my number off their list again, but when I asked them to confirm that my phone number had been completely removed from all my records, they said they couldn't do that. I had to straight-up lie to them. I told them I'd just sold my phone, my SIM card, and the username and password to my account with my carrier to some rando on Craigslist (and I'm fairly sure that selling this is illegal, but keep in mind that I was lying through my teeth when I said I did this), so my number is no longer mine, and if they call that number and divulge anything about my prescriptions, they'll be committing a HIPAA violation. That got them to change my phone number to (000) 000-0000. And now every time I pick up my prescription from them, their credit card terminal makes me click through a whole bunch of screens complaining that my phone number is invalid. Fortunately I only have one med with them, and the rest are still with Walmart.
I hate CVS, and the next time I see my doctor, I'm going to have him call Walmart to see if they're stocking the medication again so I can kick CVS to the curb.
Amazon partnering with CVS just means I won't have any interest in moving my meds over to them.
https://www.cnbc.com/2017/11/30/amazon-holding-exploratory-t...
Except that you are forgetting that WalMart is a more prevalent retailer in those areas.
Amazon already bought Whole Foods, which gives them a large enough physical presence to do whatever it is they're going to do with it. Integrating that business with the rest of Amazon will already take years- why complicate it further?
My guess? Gene Munster owns some stocks in Target and wants to offload them at a price slightly higher than what it's currently at.
If target could more intelligently replace those inferior and pricier products with their cheaper, Amazon-based alternative, then Target would provide a more competitive buying experience.
But Target is locked in with old brands and not necessarily the best ones in the market for their given vertical.
Seems like an extremely simple fix, but maybe Target is mired in longer term contracts with big brands that they can't break.
As a quick example, is Bic still the best manufacturer of the best available pens?
What makes you think that's their goal?
Also, even if it were a real possibility - I really hope not. We don't need more monopolies.
It saddened me when Amazon absorbed Whole Foods. I still shop there because I like the breakfast bar, and there's a limit on what we can actually do as consumers. I realize it's all symbolic as you can't actually "vote with your dollars" as the libertarians would have you believe.
But still, I hope this is all Munster vaporware blowing out his ass. I'm sure there'd be serious FTC issues with a merger that large. Then again, the FCC did just ditch network neutrality and both companies are large enough they can probably lobby whoever they want to make such a transaction go through.
most retail sales are made at big box stores. amazon probably wants some of that, yeah?
Let me think about picking up consumer electronics from Whole Foods...Nah! Don't like it. Doesn't work for me as a consumer from a branding perspective. Picking those up from Target? Sure! The branding work there has already been done.
Then why are they opening up bookstores?
> "Citi analysts see 40% chance Apple will buy Netflix"
Yeah, right. It's baseless cable news headline-bait garbage.
We’re heading into a historic cycle of mergers.
2. Announce rumours of merger/acquisition.
3. Stock price rises, sell stock/derivatives at a profit.
I suppose making Netflix's existing original content Apple-exclusive would have some value to Apple, but not enough to justify purchasing Netflix.
Apple sucks at online services
I am not purporting to have any knowledge that was just always my assumption.
Apple buying Netflix makes slightly more sense given that their own streaming video offerings are not exactly taking the world by storm. I have no idea what they would do with Netflix after they bought them though. Apple's STB offerings already have a Netflix app I'm sure.
But then that got me thinking that Whole Foods just might be their first foray into retail and I could see them making other retail acquisitions in various niches to eventually cover a wide spectrum of goods.
Target seems more questionable as this would duplicate the logistic systems they already have.
His analysis is flawed unless they can pick up Target cheaper than they would be able to custom fit/design their own stores.
I think they would want to own the least amount possible, but they may use stores as storage units if they decide to get into the logistics game.
The Commercial Real Estate in the Retail sector is getting whacked. (In english, it is getting cheap as real estate owners are willing to accept less rather than let a huge building go vacant and receive no income.) With that being said, they will drop a tenant if the likes of Amazon came knocking. The only issue is the leverage that Amazon has may or may not be beneficial for the owner of the real estate.
(http://www.businessinsider.com/store-closures-in-2018-will-e...) (https://www.usatoday.com/story/money/2017/12/20/here-26-reta...)
With interest rates rising in the U.S, it will put more pressure on the retail sector for those whose leases are tied to expensive financing and did not lock in lease/rates.
With all this being said, I see this as very unlikely.
Retail is very similar to record companies or the movie industry. They've failed to innovate solely because they got lazy. They took for granted their position in the market.
A good position too. I mean, if you make believe the internet isn't a threat, which top business people most likely did, then I can easily see brick-and-mortar-rules-all mentality lulling top execs to sleep. Meanwhile, Amazon etc took over from a completely different angle, utilizing on-demand and internet tech.
An acquisition from traditional retailers may be appealing.
I guess I could see why Amazon would want to do it, but I'm also a little torn on what it would do locally if Amazon didn't end up locating HQ2 here while pulling Target HQ somewhere else.
On the other hand, Loup Ventures is also based here, and I wouldn't be surprised if this is just Gene Munster trying to get press by stirring up shit.