Report says Amazon is trying to cut retailers out of the food business

What would happen if food companies stopped working with retailers like Target or Walmart?

Amazon has a plan to woo big food companies like General Mills away from physical retail stores like Target and Walmart.

This comes from Bloomberg, which says Amazon is planning a three-day summit in Seattle with leaders from General Mills, Mondelez (the Oreo makers), and other "packaged good" producers. The goal for Amazon is to convince those food companies to stop selling to customers through retailers – and instead sell direct (via Amazon, we're assuming).

The Bloomberg story goes into detail about how such a shift could influence everything from how foods are packaged (no more shelf space or display to worry about) to how it could affect the marketplace.

If something like this were to happen, the biggest impact in Minnesota would likely be to Target. The Bullseye is the fourth-biggest retailer in the state, with an estimated 26,694 workers here.

If the company suddenly didn't have General Mills cereal or Nabisco cookies on its shelves, it could mean a big blow – and possibly layoffs. That's a ways off of course, and maybe Amazon will have trouble convincing these food giants to cut out retailers so this won't matter.

CNBC points out if a food company decided to pull out of Walmart, they'd be missing out on enormous sales. In fact, 20 percent of General Mills' net sales came via Walmart and its affiliates, the site says.

But if the business landscape starts to shift Amazon's way, it could have big consequences for prominent employers such as Target.

Next Up