Yesterday the internet exploded when Gene Munster a very well-recognized business investor came out with his list of things to happen in 2018 and in it he mentions that Amazon is going to buy Target. This has to be some crazy mistake, could Amazon really merge with one of the biggest and most recognized store chains in the US?
Well the Market certainly seemed to think so because after news of the possible merger the stock rallied and was brought to its 1 month Hi point and continues to climb.
After seeing the stock market so trusting of Mr. Munster’s idea it started to get me to think that this was going to happen. Partly because the story of 2017 in the retail world seemed to be how Wall-Mart, with its move to adding a much bigger online presence, has been put back on top of the retail world with Target and Amazon falling behind. If this move happened it would create a dominating force in the retail world and make both Target and Amazon beat out Wall-Mart. I was convinced after this thinking that I tried to envision what the merger would look like. So here is my pitch for the Amazon/Target merger.
Amazon has been trying to get in to the Brick and mortar game lately, especially with their bread and butter book retail as you can see below.
They make the store not as an entity on its own but really just an extension from its online presence with the way the whole store is designed to be the internet in real life. Making it customized to amazon prime customers with ratings based on Amazon reviews. Imagine going in to Target and just seeing the best of the best from Amazon. Being able to see what everyone online rated each product. Only having products in Target that are 4 stars and Above.
Another extension of the merger I believe is going to be next day pick up. This is a popular feature that Wal-Mart included in their platform this past year where if you order from there website you have the option to do a next day store pick up. With the infrastructure that Target stores have, getting deliveries almost every day would be easy to implement from the Amazon website. You just click in store any time you want to order from Amazon and the next day delivery to your nearest target. I think this would be huge growth to Amazons business.
The next feature that I think could really help target is their no check out service that they created for grocery stores.
Imagine going to Target and being able to never have to check out. That would be huge! Never having to stand in line. All you need to do is walk in and walk out. Now this is a little ways a way I think for the Target stores because they did have some problems in the original roll out of this idea last year but imagine in 2020, which is my prediction when this realistically could be implemented, never having to go to a cashier just picking up what you need and leaving to never worry again about talking to a random check out clerk from your High School.
The last thing I want to mention is the pharmacy. It has been a rumor for around six months that Amazon is going to get in to the drug business and start selling medications just like a pharmacy through their Amazon prime website. This could be huge news for people who have CVS stock because target sold there pharmacies in store to CVS to run. So my assumption is that if this deal goes through, Amazon is going to end the deal with CVS first chance they get and start implementing Amazon pharmacy in their stores. Imagine that, you can still pick up your prescription from your local Target or instead, you just click renew online and in two days your prescription shows up at your door and you never even need to worry. This would solve a huge problem that Amazon Execs were worrying about because if you need a drug immediately you couldn’t order through Amazon prime but if you do it at the Target if you need an immediate fill for say a surgery or a sickness and than any re-fills could just be done online because you are still in the same system. No need to include an outside pharmacy for immediate re-fills. It could create the biggest shake up in the Drug industry in years.
So if you like not having to deal with check out lines, cheaper prescription drugs, and to pick up your Amazon orders within a day start hoping that this deal happens. Get your Amazon Prime subscription and wait for one for the biggest mergers of 2018.