Munster argues the potentially massive deal would be a savvy move on Amazon's part for two main reasons: demographics and store count. "Target’s focus on mom’s is central to Amazon’s approach to win wallet share," the report states. Further, with over 1,800 physical Target stores added to the roughly 470 Whole Foods stores it now operates, it would also enable Amazon to double down on its bet that it "see’s the future of retail as a combination of mostly online and some offline," Munster claims.
In terms of the details, Munster thinks the acquisition would be somewhere in the ballpark of $41 billion, which Amazon could afford. Plus, he believes the deal would be approved by anti-trust regulators, since Walmart would still have a significantly larger market share than an Amazon-Target combo retailer.