Amazon and Target sell many of the same products and are popular with shoppers of all ages across the U.S.
If you’re a fan of these retailers, you may be wondering whether or not Amazon owns Target. I was interested in this question too, so I did a lot of research, and here’s everything I discovered!
Does Amazon Own Target?
Amazon does not own Target, as both of these retailers operate independently of one another. Amazon and Target are rival stores that sell merchandise like clothing, homewares, groceries, beauty products, electronics, and more. Also, Amazon is an online retailer, while Target has physical and online stores, although Amazon is worth more than Target.
If you want to know more about Amazon vs. Target, including which one is bigger and if there’s a possible acquisition in the future, then keep reading!
Is Amazon Bigger Than Target?
While some people think Amazon owns Target, this is merely a misconception as Amazon and Target are two separate companies with no connection other than their rivalry.
That said, Amazon and Target both carry top-name brands for homewares, beauty, and everyday essentials, but Amazon is newer and bigger.
While Target has been around since the 1960s and is a household name around the U.S., it’s fallen behind Amazon in total sales volume and revenue.
For example, Amazon ranks second on the Fortune 500 list, while Target is ranked lower in spot 30.
With that, this makes sense considering Amazon’s market valuation of approximately $1.7 trillion compared to $128.88 billion for Target.
Also, Amazon’s annual revenue is much larger than Target’s.
For example, Amazon’s annual revenue hit $386 billion in 2020, while Target’s total revenue during the same year was $93 billion.
Considering Amazon’s size and value, there have been rumors that it’s buying other retailers.
Still, any talk of Amazon owning Target is just speculation, and no discussions have been confirmed on either side.
Why Doesn’t Amazon Own Target?
Amazon has not expressed any public interest in buying and owning Target, and this is most likely because Amazon is wildly successful without Target.
That said, it’s taken less than 30 years for Amazon to skyrocket into one of the most successful companies the world has ever seen.
So, while Target is up there in terms of successful retailers, it’s not quite at Amazon’s level.
Also, a deal to buy Target would be Amazon’s biggest acquisition to date, and for the most part, Amazon has appeared very strategic in its acquisitions.
That said, Amazon tends to buy much smaller brands and stores rather than shelling out a ton of cash on its main rivals.
In other words, Amazon seems to benefit from a bit of healthy competition, and it doesn’t seem fazed by Target.
Plus, Amazon usually looks for acquisitions in areas it wants to improve, such as technology, security, and streaming.
Considering Amazon already leads the way over Target in the retail space, it isn’t a likely contender for Amazon’s next acquisition based on its history. Still, the e-commerce giant could always change tactics.
Moreover, one other possible factor in Amazon’s decision not to buy Target is that Amazon would then need to take over Target’s 1,900 stores, most of which are owned, not leased.
As you can see, that’s a significant investment for a company, even one as profitable as Amazon.
Therefore, it’s likely the e-commerce leader would put a lot of thought into a deal with Target before moving forward.
Will Amazon Buy Target?
Currently, there’s no indication that Amazon will buy Target anytime soon, although some market watchdogs like to speculate.
In 2018, there was talk of Amazon potentially making a move to buy Target, but it was all outside speculation, and a deal never came about.
That said, while there’s always the possibility an acquisition could happen in the future, so far, Amazon has stayed quiet on the idea of buying Target.
However, Amazon’s more recent purchases of MGM movie studios and Zoox autonomous vehicles cost billions of dollars.
Hence, it seems likely the company will wait a bit before making more massive acquisitions, such as a future deal with Target.
Does Amazon Own Other Stores?
Although Amazon doesn’t own Target, it does own other stores thanks to a long list of acquisitions dating back to 1998.
For example, some of the most well-known Amazon acquisitions include:
- Audible
- Zappos
- Whole Foods Market
- Goodreads
- Twitch
- Ring
- Metro-Goldwyn-Mayer
As you can see, many Amazon acquisitions have been small e-retailers that it can easily absorb into its larger operations.
So, a potential buyout of Target would be a much bigger task for Amazon if it ever did happen in the future.
Now that you know about Amazon and Target, you can also see our posts on whether or not Amazon owns Spotify, if Amazon owns Chewy, and if Amazon owns Goodreads.
