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Ex-JC Penney CEO: ‘Amazon should be carrying difficulty sleeping during night’

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Despite a hackneyed faith that Amazon (AMZN) is gobbling adult retail, Enjoy CEO and former J.C. Penney arch executive Ron Johnson contends it’s Amazon — and not a competitors — that should be concerned.

“Amazon should be carrying difficulty sleeping during night,” Johnson contended during Yahoo Finance’s “The Final Round” final week. “I mean, seriously. Amazon same-store sales in a U.S. are now single-digit. Target and Walmart, these large retailers have schooled how to precedence their stores’ register to emanate a improved selling experience. That’s where business are going right now.”

Walmart’s (WMT) U.S.-owned e-commerce expansion accelerated 43% year-over-year during a third quarter, while Target posted a record 49% year-over-year swell during a same duration in e-commerce growth, according to Bank of America Merrill Lynch. Meanwhile, Amazon’s online store sales growth, that factors in product and digital sales, grew during a slower gait during a same duration during 12.5% year-over. (The Seattle tech hulk also reported a 3% year-over-year decline in earthy stores sales — a statistic that enclosed Amazon’s tenure of Whole Foods for a initial time.)

Enjoy CEO and former J.C. Penney CEO Ron Johnson on The Final Round final week contends Amazon should be disturbed about foe like Walmart and Target. Enjoy CEO and former J.C. Penney CEO Ron Johnson on The Final Round final week contends Amazon should be disturbed about foe like Walmart and Target.

Agree or not with Johnson’s argument, a 60-year-old executive positively has his share of sell experience. After famously architecting Apple’s (AAPL) earthy store knowledge as a tech giant’s comparison clamp president, Johnson attempted to move that same turn of creation to J.C. Penney. But his assertive attempts during revamping a aging retailer’s earthy stores — changing building merchandise, ditching coupons, introducing bland low prices — led to a same-store sales drop-off of 25% during Johnson’s initial year. Ousted from J.C. Penney after usually 17 months, Johnson founded a startup Enjoy, that helps clients like ATT (T) and Google (GOOG, GOOGL) offer same-day smoothness and consultant services to customers.

Johnson suggests Walmart and Target’s fast e-commerce expansion will continue, in partial since both retailers have successfully stretched their online and in-store pick-up options.

Walmart, that has significantly ramped adult a organic food offerings over a final 5 years, now offers in-store pick-up for online orders during roughly 2,100 out of a 4,300 locations, as good as online grocery smoothness from some-more than 800 stores. (The tradesman expects to supplement another 800 stores to a brew around 2019.) Walmart is also piloting a new module in partnership with Udelv, a Burlingame, California-based record company, to have online orders delivered by self-driving vehicles to homes in Surprise, Arizona.

During a holiday months of Nov and Dec final year, Target processed 60% some-more items year-over-year around options like online sequence pickup, boat from store and “Drive Up,” where business can expostulate to designated smoothness pick-up spots during a earthy Target (TGT) location.

“Up until now, it was easy to go to Amazon since they had delivery,” Johnson added. “But now Target can do that and do it better. So we consider Amazon should be a one carrying difficulty sleeping during night.”

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