Kevin O'Leary Talks Walmart, Target, and the Future of Retail Post-Amazon
TORONTO, CANADA - Amazon's entry into brick-and-mortar retail has created a stir over the course of the last year, but should grocery retailers be shaken? This week, Shark Tank star and investment guru Kevin O’Leary offered insights into the competition between the online giant and two of its top competitors—Target and Walmart.
“If you look at behemoth big boxes that are going to survive the next decade against Amazon, I would put Walmart in that basket, along with Target. Because if you look at what they’re doing and the kind of people they’re hiring on their teams and the efforts and the logistics they’re putting in place, they look like survivors to me,” O'Leary told CNBC’s “Closing Bell.”
O’Leary also noted the shrewdness with which retailers like Target and Walmart have shifted strategy, targeting specific urban markets and acquiring e-tail partners.
Making reference to the Bronx-based fulfillment center that Walmart-owned Jet.com recently announced, O’Leary noted: “Making moves like this with distribution centers that can provide hourly delivery and large metropolitan areas; that’s part of the game plan.”
Target, meanwhile, has been making a concerted effort to overhaul its stores and expand its online presence. After acquiring Shipt for $550 million late last year, Target is continuing to focus on small-format urban stores, taking a similar tack to Walmart.
Will O’Leary’s predictions play out, with a robust Walmart and Target “making the right tactical moves” to combat Amazon? AndNowUKnow will continue to report on competition in the grocery space.