Former Walmart U.S. CEO Bill Simon said Amazon’s toe-to-toe price battle with the retail giant Walmart is in the best interests of consumers.
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“Amazon and Walmart are going at it on price, and if they go at it on price, it’s drawing more people into the stores,” Simon said during an interview on FOX Business’ “Making Money with Charles Payne” on Friday.
Retailers recently posted strong sales growth numbers to beat Wall Street expectations. Retail sales were up 6.4% last month compared to July 2017, according to the Commerce Department.
Simon, a senior advisor with private equity firm KKR, said the resurgence of the American consumer can be credited to President Trump’s tax cuts and trade policies.
“The trade policies, while it’s making some companies nervous, I think it gives consumers a little bit of confidence that government policies are going to support them both in their jobs and as an American,” he said.
The Trump administration has railed against unfair trade practices by China and has imposed $34 billion of tariffs on Chinese goods. Simon said the current trade battle between the world’s two largest economies has left U.S. companies nervous.
“Most companies, they are a bit unsettled by the thought of tariffs and trade wars, as they are described,” he said.