1134 ET - Walmart and Target are in a better spot than other food retailers when it comes to weathering the competitive threat from a proposed combination of DoorDash and Instacart, Morgan Stanley analysts say in a note. While both Walmart and Target have relationships with third-party delivery platforms, their proprietary capabilities should give them more flexibility than other retailers that are more reliant on outsourced delivery, the analysts say. Walmart has its own proprietary delivery network called Spark, giving it a structural advantage, the analysts say. Target's ownership of Shipt, meanwhile, affords greater control over fulfillment, they say. "A more consolidated third-party delivery landscape could further widen the competitive gap between retailers with proprietary networks and those without," they say.
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