What would offer better reach for Amazon – acquiring Target or Nordstrom?

Mihir Kittur, Co-Founder and Chief Commercial Officer, Ugam,

2018 began with speculation around Amazon acquiring Target. And at the end of 2017, a Nordstrom acquisition was predicted. All of this left many to wonder who, in fact, Amazon will acquire next. We analyzed access to stores, population, and average household incomes by location should Amazon choose to purchase Target over Nordstrom.

Following Amazon's recent acquisition of Whole Foods, purchasing Target would provide:

  • Five times the number of stores (compared to Nordstrom)
  • Access to 69% of the U.S. population
  • 20%+ more access to the overall U.S. household income

If Amazon acquired Nordstrom, the retail giant would have:

  • Double the access to the most premium U.S. customer segment
  • Access to a new category – luxury fashion – which is a completely different category of products than Whole Foods (or Target, for that matter)
So, does it make business sense to acquire Nordstrom instead? It would make for fewer stores to rebrand and less overlapping inventory to deal with for sure. Or is eliminating a competitor the better way to go to ensure maximum exposure physically and online? We’ll continue to monitor for Amazon’s next move since last year’s acquisition of Whole Foods proved highly intriguing.


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