Sources declined to identify specific targets for Target, or a timeline for M&A, but numerous industry sources noted that recent deals for e-commerce companies may foreshadow a growing tendency for retailers like it to sell more products online, likely to compete with online retailers like Amazon.com Inc., which have spent 2014 ramping up delivery initiatives.
Last year, Target quietly struck a number of deals to bring itself further into the e-commerce arena — and that's not the only reason 2013 was a big year for the big-box retailer, in terms of the Internet. One person familiar with the company's operations suggested Brian Cornell, the CEO the company appointed Thursday, will need to snare more revenue from online operations, a tricky proposition to say the least.
Because of the massive data breach Target consumers were exposed to in 2013, the company will tread cautiously, they suggested, but also, they said, executives there realize that e-commerce must be integrated further into the company's brand.
A market laggard this year (down 5% against markets' rise) and over the last 12 months (down 15%), the company finds itself heading into the crucial 2014 school shopping season fighting off consumer fears over its digital security, which has shown up in its shares.
Sources said the company was likely to look at deals in personal care, cookware and proprietary relationships to help up-and-coming brands gain a foothold with new consumers.