Can Amazon Compete With Walmart And Target’s Same-Day Store Pickup?

As Amazon (AMZN) fights for customers, Walmart (WMT) and Target (TGT) seem to be moving ahead of Jeff Bezos’ e-commerce giant, and it may because of their brick-and-mortar stores. In an age, when stores are closing doors, and retail bankruptcy is on the rise, Walmart and Target have managed to avoid this fate and are seeing their sales surge as they rival Amazon.

“Target and Walmart’s online sales are growing three times Amazon’s in the U.S.," Ron Johnson, Enjoy CEO and former CEO of JCPenney told "The Final Round". "Forty percent pick up at store, they’re getting it same day. Amazon can’t do that. So they’ve got to figure out how to compete with Target and Walmart.”

Walmart currently has 4,756 stores in the U.S. while Target has 1,855 locations, according to their websites, which compliment their online sales by offering same-day pickup at a nearby retail location. Amazon has diversified and is offers new ways to pay for orders with cash, quicker delivery options, and the benefits of its prime memberships, which have come under attack by Walmart and Target as they boast about no membership fees for same-day orders picked up at their stores.

Amazon is competing heavily with Walmart’s and Target’s same-day services, but it has said that it will be rolling next-day delivery in the near-future with its Prime Membership, but according to Johnson, the endeavor may be costly to the company.

“Once the physical companies took advantage of online shopping, fast shipping, pick-up in store, great technology, their traffic in stores is growing and their online is growing,” Johnson told the news outlet. “So Amazon is kind of left out not having a physical footprint, and so they’re trying to compete with this fast delivery which is going to be very expensive for them.”

Amazon may see its competitors catch up with it and as they now have their own capabilities to trump its delivery options by meeting immediate demand in-stores and with same-day order pickup.

“Amazon disrupted for a while, that’s over now. Now the big stores have disrupted Amazon back” Johnson added.

Shares of Amazon stock were down 1.33 percent as of 11:41 a.m. ET on Friday while shares of Walmart stock were up 0.15 percent and shares of Target stock were up 0.05 percent at the same time.