Reports are swirling that Target and Kroger are in talks about a possible merger, but a person close to the situation told FOX Business that the reports are “false.”
“There is no truth to these reports,” said the person, who added that the two companies have been instead talking about a company called Shipt, which Target acquired last year but there have been no conversations about merging.
The news of merger talks was first reported by Fast Company early Friday, citing that the two retailers have been in talks since last summer and their merger could help them to better compete with online behemoth Amazon, who acquired organic grocer Whole Foods Market last year.
Another industry insider told FOX Business that reports of the talks have been swirling over the last 10 days and the deal could be a “great match from a commercial perspective, though getting the deal done could be tough.”
“Kroger has a big revenue advantage and Target has a larger market cap [but] it would create a third very formidable competitor in the retail wars: Amazon, Walmart, Kroger-Target,” the source said, adding that Kroger could help Target with its struggles in its “fresh supply chain and data,” two areas in which Kroger thrives at.
“[And] Target has great non-grocery private labels and terrific brand affinity,” the source added as a potential bonus to the grocery retailer.
Representatives for Target and Kroger would not comment to FOX Business regarding the reports.