Does Amazon Own Target In 2026? (Not What You Think)

If you‘re like me, you may shop regularly at retailers like Amazon and Target. You might even prefer one over the other for certain purchases. But have you ever wondered – does retail giant Amazon actually own popular chain Target?

I was curious about the relationship between Amazon and Target myself. After extensive research, I can definitively say Amazon does not own Target in 2024, or ever have. The retailers operate independently, despite selling overlapping product categories.

However, Amazon is the much larger company with about 13 times Target‘s market valuation. Let‘s explore the Amazon-Target dynamic in more detail, including key stats on the retailers, acquisition speculation, and what the future could hold.

How Amazon Became a Retail Behemoth

Amazon started as an online bookstore in 1994 but has grown at an incredible rate into one of the world‘s largest retailers. The company went public in 1997 and has been expanding ever since.

Some major events in Amazon‘s rise include:

• 1998 – Amazon acquires Internet Movie Database (IMDb) as its first acquisition. Many more will follow.

• 2002 – The company debuts Amazon Web Services (AWS), its cloud computing services business. AWS will become Amazon‘s most profitable segment.

• 2005 – Amazon Prime launches, providing free two-day shipping to members. The program now has over 200 million members worldwide.

• 2007 – Amazon releases the Kindle e-reader, creating a new way to buy and read books digitally.

• 2017 – Amazon acquires upscale grocery chain Whole Foods for $13.7 billion, its largest deal ever.

• 2018 – Amazon hits a market cap of $1 trillion, becoming the second U.S. public company to do so after Apple. Its current valuation is around $1.7 trillion.

Thanks to initiatives like marketplace selling, AWS, and Prime, Amazon has come to dominate industries from books to cloud services to voice assistants. And it‘s shown no signs of slowing its acquisition streak.

How Target Evolved into a Retail Institution

Target‘s origins trace back to 1902 when its predecessor Dayton Dry Goods opened in Minnesota. The first Target-named store came in 1962.

Some notable moments for Target include:

• 1967 – Target crosses $1 billion in annual sales and grows to 75 locations.

• 1999 – Target introduces SuperTarget stores with expanded grocery sections beyond dry goods.

• 2000 – Target.com launches nationwide, allowing online ordering with in-store pickup.

• 2012 – The company reaches $73 billion in revenues and opens stores in Canada. However, this international expansion proves unsuccessful.

• 2017 – Target acquires same-day delivery startup Shipt for $550 million to bolster its e-commerce fulfillment.

• 2021 – Target reports record revenues of $106 billion, up 15% year-over-year. Its online sales grow by nearly 50%.

Today, Target has around 1,900 stores and brings in over $100 billion annually. However, it doesn‘t come close to matching Amazon in terms of reach, valuation, or variety.

Comparing Product Categories: Amazon vs. Target

Amazon and Target have significant product category overlap – however Amazon offers a wider selection overall.

Here‘s how the giants‘ product offerings stack up:

• General merchandise – Both Amazon and Target sell apparel, accessories, home goods, kitchenware, furniture, electronics, toys, and more general merchandise. Target showcases affordable brands like Cat & Jack, Threshold, and Hearth & Hand in stores.

• Groceries – Amazon owns Whole Foods for upscale groceries and has launched Amazon Fresh for delivery. Target sells groceries including Archer Farms, Good & Gather, dairy, frozen foods, snacks, and beverages in stores.

• Media – Amazon dominates in books, music, movies, and video games thanks to ownership of Entertainment brands like IMDb and Audible. Target has a smaller selection of books, DVDs and music.

• Prescriptions – In 2018, Target bought pharmacy startup Shipt. Most Target stores fill prescriptions onsite. Amazon does not sell prescriptions directly.

• Household essentials – From cleaning supplies to health and beauty products, Amazon and Target are matched. However, Amazon offers more variety via marketplace sellers.

Overall, Amazon edges out Target in product breadth and depth, especially when counting marketplace listings. But Target holds its own with strong owned brands and in-store experiences.

Comparing the Retail Giants by the Numbers

While Target stands on its own as a successful retailer, Amazon surpasses it across key financial metrics. Here‘s a breakdown:

• Market Valuation

  • Amazon: $1.7 trillion
  • Target: $128 billion

• Total Revenue in 2021

  • Amazon: $469 billion
  • Target: $106 billion

• E-commerce Revenue in 2021

  • Amazon: About $280 billion (60% of total)
  • Target: $15.8 billion (15% of total)

• Number of Stores (2022)

  • Amazon: Over 175 fulfillment/sortation centers
  • Target: Close to 1,900 retail stores

• Stock Price Growth Since 2018

  • Amazon: Increased ~160%
  • Target: Increased ~20%

 

Clearly, Amazon brings in significantly more revenue overall and through online sales. Not to mention its valuation dwarfing Target‘s by over 13 times.

However, Target holds the advantage in physical stores. And its e-commerce and stock growth still represent healthy increases.

Bottom line – both retailers are prospering, but Amazon maintains a commanding lead in size and financials.

Data sources: Macrotrends, CompaniesMarketCap, National Retail Federation, Google Finance

Why Amazon Has Yet to Acquire Target

Occasionally over the years, analysts have floated the idea of Amazon acquiring Target. Let‘s explore some theories on why this retail takeover has not happened:

1. No Concrete Interest from Amazon (Yet)

Amazon has yet to indicate serious interest in buying Target. Acquiring such a massive established retailer does not seem to align with Amazon‘s historic strategy.

And as retail expert Sarah Halzack told the Washington Post: "For Amazon, buying Target would mean getting into the business of operating stores, something it has steadfastly avoided over the years…It‘s not really in their DNA."

2. Amazon‘s Lean Operations

Amazon runs lean by keeping infrastructure like warehouses and headcount optimized for e-commerce.Absorbing Target‘s huge store network does not jive with this model.

"Target has too many financial liabilities that Amazon has avoided," says Forbes contributor Brittain Ladd.

3. Amazon‘s Preferred Acquisition Targets

Amazon tends to acquire younger companies that expand its tech, production, and media capabilities. For example:

• Retail: Zappos, Shopbop, Audible
• Media: IMDb, Twitch, ComiXology
• Tech: Kiva Systems (robotics), Zoox (autonomous vehicles)

Buying an established big-box retailer like Target would be an anomaly for Amazon.

4. Keeping Target as a Competitor

As an industry leader, Amazon may prefer Target to remain an independent retailer. The competition from Target (and Walmart) could motivate Amazon to keep innovating.

How Do Amazon and Target Compare for Shoppers?

For consumers, is Amazon or Target better for shopping? They both have pros and cons.

Amazon Pros

• Extremely vast product selection across endless categories
• Ton of options for fast shipping, including 1-day Prime
• Easy price comparisons with Amazon‘s bots
• Convenience of shopping from home

Amazon Cons

• No physical stores for returns or seeing products in person
• Counterfeit issues with some third-party sellers
• Have to pay for Prime membership for best experience

Target Pros

• Ability to browse and test out products in person
• Free standard shipping on orders $35+, free store pickup
• Good quality own brands like Opalhouse and Goodfellow
• No membership fees to shop

Target Cons

• Smaller product selection compared to Amazon
• Spotty in-stock online for popular items
• Fewer shipping speed options than Amazon
• Occasional long in-store checkout lines

Each retailer has their perks – Amazon for endless selection and delivery, Target for an enjoyable in-store experience. Ultimately it comes down to your personal preferences as a shopper.

What Does the Future Hold for Amazon and Target?

With retail ever-evolving, especially post-pandemic, what might the future look like for retail giants Amazon and Target?

• More omnichannel experiences – Blending the digital and in-store shopping journeys will be a priority for both companies. Especially order online, pickup in-store or curbside pickup.

• Faster delivery – Amazon will likely continue decreasing Prime shipping speeds. Target recently rolled out same-day delivery via Shipt to compete.

• Brick-and-mortar expansion – Amazon has opened some physical bookstores and grocery stores and may continue targeted brick-and-mortar growth. For Target, remodeling existing locations takes priority over opening new stores.

• A major acquisition? – After the MGM deal in 2022, Amazon may lay low for a while. But they likely have an eye on companies that could advance streaming, cloud computing, AI and more. Target just acquired meal kit company Galley Solutions, but large deals seem unlikely.

While an Amazon acquisition of Target doesn‘t appear imminent, I expect both retailers to make strategic technology and operational investments. Amazon surely keeps tabs on Target‘s every move as a major competitor.

The Bottom Line: Amazon Does Not Own Target in 2024

After investigating whether retail juggernaut Amazon owns popular department store Target, the verdict is clear – these companies operate separately.

Key takeaways:

• In revenue, valuation, and e-commerce sales Amazon is vastly larger than Target. But Target holds the advantage in number of physical store locations.

• Amazon has shown no signs of pursuing an acquisition of Target, which would be its largest purchase ever.

• Amazon tends to acquire emerging companies especially in tech, unlike purchasing a leading big box retailer like Target.

• For shoppers, Amazon wins for selection and delivery while Target excels in-store experiences. Each has pros and cons.

The retail landscape can shift rapidly, so only time will tell if Amazon ever makes a play for Target. For now, Amazon seems content leading e-commerce while Target focuses on improving omnichannel retail.

I hope this breakdown helped explain the relationship between Amazon and Target and what the future could look like. Let me know in the comments your thoughts on how the retail giants compare, and which one you prefer for shopping!