Though rumors surfaced that retail giant Target is in talks to merge with Kroger, the largest grocery chain in the U.S., a source close to both companies told CNBC no discussions of a merger have occurred.
CNBC's source said talks between the companies were about a possible partnership with Shipt, the same-day delivery company Target acquired in December.
Target has recently increased its attention to its grocery offerings, with online competitor Amazon acquiring Whole Foods for $13.7 billion in 2017.