In the beginning of 2018 Gene Munster of the Loop Ventures which is a venture capital firm and a widely followed analyst had made a prediction that the largest e-commerce giant will be buying Target this year.
This forecast by Munster is yet to pan out since only 22 days are left for the year to end.
However, the Loop Ventures just doubled down on the prediction of Munster stating in a new note that this deal of Amazon buying Target still makes sense. The company published a post related to Amazon and Walmart on Thursday.
At the end of the post the managing partner at the Loop Ventures, Andrew Murphy added a statement the prediction of the company that Amazon will be acquiring Target in 2018 was actually wrong.
He further added that the firm continues to believe that the combination of Amazon and Target makes much sense because the e-commerce giant needs to acquire Target so as to continue with its growth in the retail sector.
BusinessInsider reported that in an interview on Fiday, Munster told it the though the timing of the deal as well as acquisition is difficult to predict accurately but apparently it will be get done from now to 2021.
A deal of this sort will be a big threat to Walmart which already had 5,000 stores in the United States.
According to Munster the acquisition of Target by Amazon will only accelerate the threat which already exists to Walmart.
Murfy believes that Amazon lacks a hold in the areas of product design as well merchandising and acquiring Target will allow it to compete more effectively in those areas.
He stated that this acquisition will then bolster the brick and mortar foray of Amazon.
Source: Market Insider, Business Insider
