Amazon could soon face stiff competition should reports of a merger between Target and Kroger prove true. 

The retailers have reportedly been discussing the possibility of teaming up since last year, according to Fast Company, which first broke the news.

Like many retailers, Target and Kroger have been seeking ways to cope with the Amazon onslaught. Kroger in particular, along with Costco and Sprouts, witnessed its stock plummet after Amazon's acquisition of Whole Foods. To combat the decline, the grocery chain had considered launching a clothing line, purchasing Boxed.com and early in the year had considered teaming up with Chinese e-commerce behemoth Alibaba. None of those ventures have come to fruition.

A merger with Target could give Kroger access to more merchandise and help firm up its e-commerce business while simultaneously offering Target customers a better grocery experience. The two could also offer loyalty rewards to customers who shop at both stores.

Shares in premarket trading rose after the news surfaced on Friday morning, despite other reports saying the merger rumors have little basis in truth, CNBC reports.