Deep Dive 11 minutes PremiumUS Retailers Becoming More Relevant Through Acquisitions: Mass Merchandisers vs. Amazon Coresight Research April 1, 2019 Executive SummaryMerger and acquisition (M&A) activity in the US retail sector has risen over the past 10 years, in terms of deal value and number of deals, and deals within the mass-merchandiser sector have increased, dominated by several blockbuster deals. North American retail M&A activity has been steady during 2007–2018, with 148 deals valued at than $10.2 billion in 2018. Motivations for mass-merchandiser M&A include: entering adjacent markets, acquiring key technology and increasing scale, and establishing a presence in fast-growing markets such as China and India. Target has historically made small acquisitions for technology or products; however its most recent purchase – of Shipt for $550 million – has also been its largest, enabling faster delivery times. Walmart completed the transformative acquisition of Jet.com in September 2016, which led to a series of product-related acquisitions. The company acted on the high-growth opportunity in India and acquired a majority stake in its leading marketplace, Flipkart, in August 2018. Gaps in product assortments and the appeal of unique, private-label products has also been a driver behind many acquisitions. The environment for continued M&A remains favorable due to healthy stock valuations, relatively low interest rates, increasing competitiveness and volatility in the retail sector. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for Other research you may be interested in: Social Splurge—Consumers Get Out and About During Memorial Day Weekend: US Consumer Survey InsightsThree Data Points We’re Watching This Week: Store Closures, Last Mile and MoreUS Consumer Tracker: Inflation Awareness Reaches Record HighAugust 2023 Leading Indicators of US Retail Sales: Consumer Sentiment Falls Month Over Month Amid Inflation Resurgence