Does Amazon Own Target In 2023? (Not What You Think)
Amazon does not own Target in 2023. The two companies continue to operate as separate, rival retailers. I‘m William Decker, a successful Amazon FBA seller and e-commerce expert. In this post, I‘ll provide a detailed look at the relationship between Amazon and Target – two of the biggest names in retail.
While rumors sometimes spread that Amazon has bought out Target, this is not the case as of 2023. However, it‘s understandable why some consumers might think Amazon owns Target. After all, the two companies have some strong similarities.
Table Of Contents
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- Are Amazon and Target Competitors?
- How Do Amazon and Target Compare in Size?
- Why Hasn‘t Amazon Bought Target?
- Could Amazon Acquire Target in the Future?
- What Other Companies Does Amazon Own?
- The Bottom Line on Amazon and Target
Are Amazon and Target Competitors?
Amazon and Target are direct competitors in the retail space. Both companies sell a wide range of consumer goods including:
- Clothing and shoes
- Home furnishings and decor
- Toys and games
- Beauty and personal care items
- Groceries and pantry staples
- Small kitchen appliances and cookware
- Electronics
- Books, movies, music
- Pet supplies
- Outdoor/sporting goods
However, there are some key differences between the two retailers:
- Amazon is solely an ecommerce company, while Target has a large network of physical stores as well as an online store.
- Amazon has a larger product selection, while Target curates products more narrowly.
- Amazon started as an online bookseller in 1994 and has grown over the past 25+ years. Target began as a department store in the 1960s.
So in summary, while Amazon and Target have some overlap in their product offerings, they operate quite differently in terms of their store formats and overall strategies. But they undoubtedly compete for many of the same customers.
How Do Amazon and Target Compare in Size?
When comparing the size and financials of Amazon and Target, it‘s clear Amazon is much larger overall:
- Amazon‘s market valuation is around $1.7 trillion compared to Target at $115 billion.
- Amazon‘s total 2021 revenue hit $470 billion. Target‘s revenue for 2021 was $106 billion.
- Amazon ranks #2 on the Fortune 500 list. Target ranks #37.
- Amazon has over 1.6 million employees worldwide. Target employs approximately 450,000 people.
As you can see, Amazon completely dwarfs Target in terms of market value, annual sales, and number of employees.
Amazon‘s rise to become one of the world‘s most valuable companies has been astounding. The company has only been around for 28 years since Jeff Bezos founded it in 1994. Meanwhile, Target has been a retail giant since the first Target store opened in 1962.
However, Target is still a very successful, profitable retailer in its own right. But it‘s just not on the same massive scale as ecommerce leader Amazon.
| Amazon | Target | |
|---|---|---|
| Market Valuation | $1.7 trillion | $115 billion |
| 2021 Revenue | $470 billion | $106 billion |
| Fortune 500 Rank | #2 | #37 |
| Number of Employees | 1.6 million | 450,000 |
Data sources: Forbes, Macrotrends, Fortune
Why Hasn‘t Amazon Bought Target?
With Amazon‘s deep pockets and propensity for major acquisitions, some people wonder why it hasn‘t just bought Target. But there are some likely factors holding Amazon back:
1. Target would be Amazon‘s largest acquisition ever
Buying Target would be a massive undertaking, even for Amazon. Target‘s market cap of over $100 billion makes it larger than any company Amazon has ever acquired. Taking over Target‘s nearly 2,000 physical store locations would require major capital investment.
2. Amazon succeeds without owning Target
Amazon is already the dominant force in ecommerce and its core retail business is thriving. So Amazon may not feel the urgent need to acquire major competitor Target. The two brands seem content to operate independently.
3. Target has extensive physical store ownership
Most Target stores are owned, not leased. Acquiring all these assets could be costly and time-consuming for Amazon. The ecommerce giant may not want to take on that brick-and-mortar footprint.
4. Amazon often targets acquisitions in new areas
Amazon typically uses acquisitions to jumpstart expansion into new technologies, markets, or capabilities (e.g. smart home, healthcare, media). Since Target is already a retail competitor, it may not be as attractive for Amazon strategically.
Based on these factors, Amazon buying Target doesn‘t seem imminent. It‘s possible Amazon is content to focus on its core ecommerce and web services businesses for now. But things could certainly change in the future if Amazon decides to make a mega retail acquisition.
Could Amazon Acquire Target in the Future?
Despite no current plans, rumors have occasionally circulated that Amazon could make a move to acquire Target someday. Back in 2018, there was speculation Amazon might buy Target, though obviously no deal transpired.
It‘s tough to rule out Amazon buying Target down the road. Amazon has the financial capability to pull off a massive acquisition. The retailer has made some big recent purchases like:
- MGM Studios for $8.45 billion
- iRobot for $1.7 billion
- One Medical for $3.9 billion
However, these deals were targeted in the media, robotics, and healthcare spaces.
Buying an established retail chain like Target seems like more of a stretch. Amazon would suddenly have hundreds of thousands of new employees and physical locations to manage and integrate.
Still, I wouldn‘t say an Amazon-Target deal is impossible. Amazon has surprised us before with some of its high-profile acquisitions and strategic decisions under CEO Andy Jassy. If Amazon decides getting into brick-and-mortar retail is important to its growth, Target may look more enticing.
But for now, these two retail giants seem content to battle it out independently. I don‘t foresee any Amazon-Target deal on the horizon unless Amazon‘s strategy shifts significantly under its new leadership.
What Other Companies Does Amazon Own?
While Amazon does not own Target, it has acquired many companies since its early days as an online bookseller. Some of Amazon‘s biggest and most well-known acquisitions include:
Whole Foods – Acquired the grocery chain for $13.7 billion in 2017. This gave Amazon a major foothold in physical grocery retail.
Zappos – Bought the online shoe and clothing retailer in 2009 for around $1.2 billion.
Twitch – Purchased the popular live-streaming gaming platform for $970 million in 2014.
Ring – Acquired the smart doorbell and home security company for over $1 billion in 2018.
PillPack – Bought the online pharmacy startup for $750 million in 2018 to enter the healthcare space.
IMDb – Acquired the popular movie/TV database website in 1998, early in Amazon‘s history.
Unlike hypothetical Target scenario, these past purchases have allowed Amazon to expand into entirely new areas like streaming content, smart home, and online pharmacy. Buying Target may offer fewer strategic benefits since Amazon already dominates online retail.
The Bottom Line on Amazon and Target
While Amazon owning Target makes for interesting speculation, these retail giants remain fully separate, competing companies as of 2023.
Key takeaways:
Amazon is the much larger company by revenue, valuation, and number of employees. But Target still generates over $100 billion annually.
Amazon has not shown any concrete desire to acquire major retailer Target. It‘s Amazon‘s largest rival, but not a strategic fit for acquisition currently.
An Amazon-Target deal can‘t be ruled out long-term. But no talks or plans have been announced by either side.
Amazon typically targets smaller, strategic acquisitions vs. huge retail rivals. It owns dozens of companies, but no major retailers like Target.
So in summary – no, Amazon does not own Target in 2023, despite being its largest competitor. The two companies remain independently operated retailers battling for market share. But it‘s still interesting to speculate whether Amazon could ever decide to swallow up its biggest retail rival!
