Rumors are aswirlin’ after Fast Company reported that Kroger and Target are considering a merger to face Amazon’s industry presence. However, sources are now shooting down the notion, according to Reuters.
“We generally don’t comment on rumors or speculation,” said Kroger's Head of Corporate Communications and Media Kristal Howard, the latter news source reported.
After the former news source leaked its speculative news, which explained that the merger would be “the best path forward,” both companies saw a boost in shares. While gains were paired later, Kroger’s shares rose 8 percent, according to CNBC, which also reported that Target’s hiked fractionally, as well, in the premarket.
Target hired Jeff Burt, a former Kroger exec, last year, who took on the changes the retailer sought to make in its food options.
“We believe Target has much further to go before the grocery business is fully fixed,” said GlobalData Retail Managing Director Neil Saunder, as reported by CNBC.
This news comes in the wake of Albertsons and Rite Aid’s announcement that they would be merging, and is interesting in light of Amazon’s recent growing pains after its Whole Foods acquisition.
What do these changes and the speculation on Target and Kroger say about the changing retail landscape? Will we see more mergers to bolster business revenue? Deli Market News will keep you updated with the latest industry happenings!