Mergers That Could Dethrone Amazon: Target (TGT) and Kroger (KR)
Again, credit has to be given where it’s due. Struggling retailer Target Corporation (NYSE:TGT) has tried to wade deeper into the grocery business, aiming to win back customers lost to Walmart.
As managing director of GlobalData Retail Neil Saunders bluntly put it earlier in the year, “Grocery doesn’t work for Target like it should.”
Simultaneously, Kroger — arguably the most vulnerable name to Amazon’s recent entry into the grocery business — has also dabbled in superstores, selling home goods, clothing and even some furniture under the same roofs it sells fruit and meat. Kroger patrons’ response to non-food merchandise has been more or less as lackluster as Target’s customers’ interest in its expanded grocery aisles: not much.
Both organizations have well-oiled operations and enough scale to achieve some serious buying power though. What if each of these names could team up and help the other get over their lingering humps? Indeed, what if they could help one another sell each other’s goods?
Target just got into next-day delivery, and Kroger has launched curbside pickup akin to Amazon’s pilot grocery pickup program.
It’s one of the less likely mergers and acquisitions we’ll ever see, but if the two organizations could help each other fulfill orders in more markets, it could be a match made in heaven.