Amazon may face mounting regulatory pressure and lawsuits over its pricing practices, according to former Walmart U.S. CEO Bill Simon.
â€œ[Amazon] is starting to come under scrutiny for some of their labor and hiring practices,â€ Simon told FOX Businessâ€™ Stuart Varney. "[You're] starting to see people complain about how the way they price and they scrape prices across the market.â€
On Monday, the ecommerce giant kicked off its Prime Day promotion by offering deals on more than 100,000 products. Its third annual Prime Day is a way for Amazon (NASDAQ:AMZN) to distance itself from its online retail competitors like Walmart (NYSE:WMT).
However, Simon noted Walmart is the best answer to Amazon as the retail company has aggressively enhanced its digital space and enacted a curbside pickup program to benefit consumers.
â€œ[Walmart] has done a really, really good job taking the assets that they have, the physical assets and integrating them into the digital world and thatâ€™s really what they are doing with the pickup programs and the order online and scan for pay,â€ he said.
The former Walmart U.S. CEO said Amazon will continue in its current path because Wall Street has rewarded the company for boosting revenue, not generating profits.
â€œAnd the reason I think Amazon will continue in the path that is on is that [Wall Street] continues to reward the behavior that says Iâ€™m going to break even in retail, make a little money in web services and grow the top line at a phenomenal rate and that sort of leads them to the place where they might come under more scrutiny.â€