Whether it’s a department store or wholesale items, consumers are becoming a lot more price savvy in the retail department, according to former Toys “R” Us CEO Jerry Storch.
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“People that offer their customer value are doing tremendously well,” Storch told FOX Business’ Maria Bartiromo on Tuesday.
But whether retailers like it or not, the e-commerce economy has stirred the pot, making it necessary to adjust and adapt to a completely new retail environment.
Some of America’s biggest retailers, squeezed by e-commerce, have been closing stores in large numbers, including Sears, which recently filed for bankruptcy, the struggling J.C. Penney and Storch’s former stomping grounds, Toys “R” Us, which closed its doors in June.
However, the tables may be turning because some brick-and-mortar stores are more willing to make the investments needed to compete with the likes of e-commerce giants, like Amazon.
And despite the industry challenges, the two main retailers that can compete with Amazon are Walmart and Costco, according to Storch.
Besides the lure of lower prices, Walmart – the world’s biggest retailer – recently announced a partnership with Microsoft to use its cloud in order to take on Amazon. It’s this eagerness to go head-to-head with Amazon on the U.S. retail stage and eventually on a global level, that makes it Amazon’s main competitor, Storch said.
Costco – which operates in six countries, including Canada, the U.K. and Mexico – offers a wide range of products from groceries to furniture, at wholesale prices, making it very attractive to consumers of “all income levels,” according to Storch.
“People love Costco,” he said. “Great deals and you can’t beat it because you buy in bulk.”
Storch added that discount shops like Burlington, TJ Maxx and Ross Stores are also worthy competitors.