More than advancing Amazon's retail business, Saunders sees Target's logistics and supply chain as a greater value.
Amazon is slowly becoming an all-encompassing mass that seeks to swallow up everything in its path. Jeff Bezos owns The Washington Post, Amazon's digital assistant is dominating the market, and it bought Whole Foods past year.
"The fact that Target will have this service in place during 2018 will significantly improve its online competitive position", Charlie O'Shea, chief retail analyst for Moody's, tells CNN. But, uh, not only their Whole Foods acquisition, but also what they're doing, they're testing their Amazon Go-store right now, which is basically an automated offline.
Munster characterises this forecast as his "boldest 2018 prediction".
"Predictions are useful, but it's not clear that whatever people from outside predict the company is going to follow this because they just did an acquisition last August", said Kotha about Amazon's recent Whole Foods acquisition.
The analyst is predicting that online shopping giant Amazon.com will make a bid for United States department store Target this year to bolster its retail offering following Amazon's US$13.7 billion acquisition of upmarket grocer Whole Foods in the U.S., according to a report today in Bloomberg.
Despite such challenges, Munster seemed sure that the deal would be approved. Uh, first is the demographic, which is, uh, maybe more narrowly defined as moms. Both companies target mothers and families. Amazon has, over the years, aggressively pursued moms through promotions around Prime along with loading Prime Video with kid-friendly content.More news: Freezing rain, sleet on tap in MA on Saturday
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"What Amazon is very good at is envisioning a future where they can use the technology plus a retail store to make a hybrid retail", he said.
It could be a win for Target, too, and it could arm Target and Amazon against a surging Walmart.
Buying Target would bump its store count up to 2,300 stores.
News of the proposed deal sent Target's stock rising to 3.7 percent earlier this morning.
Bloomberg notes that any deal would have to meet the approval of regulators. President Donald Trump is no fan of Jeff Bezos.
Is Target the next big buyout for Amazon?
While Munster believes the Whole Foods acquisition was a sign of things to come, Kotha believes it was an anomaly.