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Amazon Will Buy Target This Year, Gene Munster Predicts

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Re: Amazon Will Buy Target This Year, Gene Munster Predicts

#91

Post by bsder »

randomerr wrote: post #32

This actually gives Amazon a backdoor entrance to CVS/Caremark medication distribution. You see CVS has been slowing down building new free standing locations because they've taken over all of Target's pharmacy. 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…

> I would also look at all Targets to become order pick-ups for rural and high crime areas.

Except that you are forgetting that WalMart is a more prevalent retailer in those areas.

Re: Amazon Will Buy Target This Year, Gene Munster Predicts

#92

Post by dave5104 »

code_duck wrote: post #29
el_benhameen wrote: post #15

Earlier quoted context omitted.

I think the real-world version of Amazon’s product recommendations would be a man offering you 30 more varieties of apples after you put a Fuji in your basket.

That seems to be standard with automated product recommendations. I recently purchased a coffee maker for my girlfriend. My Facebook account has become linked my credit card account, somehow, so Facebook has started showing me advertisements for the manufacturer of the coffee maker. There are at least a few faulty assumptions at work there.

Just in case you want to buy another! /s

Always thought those types of ads were odd. I just bought the item you're advertising to me--and in most cases, why would I buy another one so soon?

In your case, I'm surprised it's not smart enough to say coffee maker purchased, how about we show some coffee bean ads? (And even in that case, you might make the argument that it'd be a second gift for your girlfriend.)

Re: Amazon Will Buy Target This Year, Gene Munster Predicts

#93

Post by debt »

khedoros1 wrote: post #86
debt wrote: post #37

Earlier quoted context omitted.

There are many products at Target that are simply inferior and more expensive than their alternatives on Amazon. 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. Seem…

> There are many products at Target that are simply inferior and more expensive than their alternatives on Amazon. And there are many products on Amazon that are fake. At least I know what I'm getting at Target, and returns don't involve negotiating for a shipping label and figuring out where there's a package drop-off nearby. > As a quick example, is Bic still the best manufacturer of the best available pens? Probab…

I agree, I'm saying that Target and Amazon would be an amazing intersection of two great umbrella brands.

Re: Amazon Will Buy Target This Year, Gene Munster Predicts

#94

Post by amyjess »

randomerr wrote: post #32

This actually gives Amazon a backdoor entrance to CVS/Caremark medication distribution. You see CVS has been slowing down building new free standing locations because they've taken over all of Target's pharmacy. 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…

It's a shame because CVS is horrendously expensive and Target wasn't. It used to be that Target, Walmart, and Kroger all tied for the cheapest generics where I live. Other supermarkets were slightly more expensive, and CVS and Walgreens are colossal ripoffs. Now Target has dumped their pharmacies on CVS, and Kroger raised their prices (but not to the extreme levels of CVS and Walgreens). Walmart is the only cheap pharmacy left, and they'll have my business for life.

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.

Re: Amazon Will Buy Target This Year, Gene Munster Predicts

#95

Post by [deleted] »

bsder wrote: post #91
randomerr wrote: post #32

This actually gives Amazon a backdoor entrance to CVS/Caremark medication distribution. You see CVS has been slowing down building new free standing locations because they've taken over all of Target's pharmacy. 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…

> I would also look at all Targets to become order pick-ups for rural and high crime areas. Except that you are forgetting that WalMart is a more prevalent retailer in those areas.

[deleted]

Re: Amazon Will Buy Target This Year, Gene Munster Predicts

#96

Post by fezz »

mikey_p wrote: post #84
stcredzero wrote: post #76

Earlier quoted context omitted.

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. 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.

It seems ridiculous, but that is exactly what they are doing in some stores. Amazon electronics kiosk just before the checkouts: https://twitter.com/alexhillman/status/947593851715424256

I noticed the kiosk was there one week and gone the next. It did feel totally out of place.

Re: Amazon Will Buy Target This Year, Gene Munster Predicts

#98

Post by [deleted] »

petra wrote: post #65
gmoore wrote: post #34

Earlier quoted context omitted.

I disagree - their goal isn't to kill off traditional retail. Their goal is to get a cut of every transaction you make AND remove as much friction from the purchase as possible - wherever you make it...it makes perfect sense that Amazon would buy up a chain with lots of local presence.

Sure, that's their ultimate goal, but currently, at this stage of this game, isnt it better to spend much less than $41B, on just curbside check out points(which is the future, probably), create a curbside war between retailers(already started), and in the process bankrupt traditional remailers and shift user behaviour to online, and later, buy some retailers for pennies on the dollar?

[deleted]

Re: Amazon Will Buy Target This Year, Gene Munster Predicts

#99

Post by bob_theslob646 »

Gene Munster clearly does not understand how Amazon works. They dominate on efficiency which comes with scale. I do not think they want to the brick and mortar route, but could be wrong.

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.

Re: Amazon Will Buy Target This Year, Gene Munster Predicts

#100

Post by djsumdog »

jonknee wrote: post #67

If Amazon is going to make a high dollar retail acquisition, I think Costco makes a lot more sense than Target. True warehouse stores that could be used for distribution, high income customers who don't mind paying a subscription fee and it is already headquartered in the Seattle area.

And considering Costco's international presence and their emphasis on employee treatment, I doubt they'd even consider selling to Amazon.
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