Bill Simon, former Walmart US CEO, said Congress should look into splitting up Amazon.
“They’re not creating money in retail, as well as they’re putting retailers out of business,” Simon told CNBC.
He said the e-commerce giant has operated its retail segment at a loss for decades, subsidizing the retail portion of its business with profits by various other areas, such as web services.
“the item’s anti-competitive, the item’s predatory, as well as the item’s not right,” said Simon.
“the item’s not going to hurt the big ones,” said Simon, who served as president as well as chief executive officer of Walmart U.S. by 2010 to 2014. “Walmart can adjust. the item’ll be there. Costco will continue to thrive.”
“the item’ll hurt smaller retailers, as well as the item’ll hurt specialty chains,” he said. “You see what’s happened to Toys R Us as well as department stores. J.C. Penney can be in trouble.”
“of which’s because Amazon sells below cost as well as continues to do of which,” said Simon, who serves on the board of directors for Darden Restaurants. “the item’s destroying jobs, as well as the item’s destroying value inside the sector,” he said on “Closing Bell” on Thursday.
Earlier inside the day, President Donald Trump criticized Amazon’s business practices in a Twitter post.
“Unlike others, they pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), as well as are putting many thousands of retailers out of business!” Trump wrote on Twitter.
A 1992 Supreme Court ruling said states couldn’t collect sales taxes gathered by mail-order catalog companies unless the businesses had a physical presence in a state. however some states say online retailers should be required to collect sales tax, even without a physical presence.
“the item came down to a Supreme Court decision of which came down three years before Jeff [Bezos] shipped his first book,” Gerald Storch told CNBC on “Closing Bell.”
Storch, former vice chairman of Target, who founded Target.com inside the late 1990s, as well as former CEO of Toys R Us, called the ruling “an antiquated decision.”
“If you read of which Supreme Court decision … the item was based on all kinds of things of which simply don’t apply anymore,” said Storch, who worked with Amazon as well as Jeff Bezos in 2001. “At of which point, e-commerce was nothing; the item was zero. at This particular point the item’s taken over the whole economy.”
Storch pointed out of which half of all online product searches begin as well as end on Amazon, as well as said the playing field in retail should be more level, something the item has not been inside the past.
“Amazon can be a lot more powerful than people realize,” he said.