Target and Kroger are discussing a possible merger, several people with knowledge of the matter tell Fast Company. The talks come as the grocery industry grapples with Amazon’s increasing hold on the market.

The two companies first started conversations last summer about a partnership that could improve Target’s grocery business and give Kroger customers more access to merchandise and e-commerce. Target and Kroger spoke again in the fall and talks are ongoing this year. The companies appear to be struggling to decide whether a merger is the best path forward. Last year, Target and Kroger’s combined annual revenue added up to $195 billion.

Kroger declined to comment for this story. Target did not respond to requests for comment.

Amazon’s acquisition of Whole Foods—a deal valued at $13.7 billion–last year forced grocers and retailers alike to come to terms with the holes in their businesses. That led to a series of partnerships and acquisitions aimed at pulling sleepy grocery retailers out of complacency and into the digital age. Many grocers–including Kroger, Albertson’s, Publix, and Giant and Stop & Shop owner Ahold Delhaize–struck deals with Instacart to give their supermarkets a digital presence and provide on-demand delivery to their customers. Albertson’s also purchased meal-kit purveyor Plated.

At the same time, mega-retailer Walmart has pushed further into the grocery space. The company already commands the largest share of the nearly $800 billion U.S. grocery market, according to a CNBC report from last year. In 2017, Walmart teamed up with Google Home to offer voice-activated home shopping, just like Amazon offers grocery shopping via Alexa. This year, Walmart will make its grocery delivery service available to 40% of U.S. households. It is also building out a millennial-focused grocery brand on Jet.com. In 2017, Walmart raked in $485.9 billion in revenue.

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Amazon has already started selling Whole Foods products on its flagship site, testing on-demand delivery of those groceries, and offering rewards to Prime credit card holders.