Data-driven insights that help companies navigate the changing retail and technology landscape. LEARN MORE
Deep Dives 11 minutes

US Retailers Becoming More Relevant Through Acquisitions: Mass Merchandisers vs. Amazon

#
Coresight Research

Key Points

Merger 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.

This report is for paid subscribers only. Learn more about subscriptions here.

Other research you may be interested in:

×
Do NOT follow this link or you will be banned from the site!