Amazon should be worried about Walmart former JC Penney CEO says
Ron Johnson
Enjoy.com CEO and  founder Ron Johnson  thinks Amazon should be really worried about competitor Walmart  but could fight back with another big acquisition.
"I think this is a decade-long price fight. Every quarter is a new round  but Walmart's coming back "  Johnson  said on CNBC's "Fast Money."
The former J.C. Penney CEO has been bullish on Walmart since at least February  when he appeared on "Fast Money" and called the big box retailer's rally. On Thursday  Walmart shares had their best day in nine years. With stock up 44 percent year-to-date  Walmart appeared to confirm  Johnson 's predictions that it could be Amazon's biggest threat.
Amazon may be growing fast  but  Johnson  thinks Walmart has a decided advantage with its preexisting brick-and-mortar infrastructure.  He  explained that most Americans live near a Walmart where they can buy most of what is available on Amazon.
And  Johnson  maintains that Amazon's distribution centers are more expensive and less efficient to run than Walmart's store and warehouses.
"They forward deploy inventory into things called warehouses  that are really stores. They are a lower cost operation than amazon's distribution centers  " Johnson  said.
As for Amazon   Johnson  thinks acquisitions like Whole Foods  are a good move for the internet retailer. And Target is right on brand.
"Whole Foods is to grocery  what Target is to mass. It's the upscale discounter "  he  said.
While  Johnson  doesn't anticipate that mega-acquisition anytime soon   he  said  he  does think Target has all the right amount of space in all the right places for Amazon to stay on top of the competition.
"Target's got 1 500 stores on Main and Main of every city in the country  " Johnson  said.
Enjoy.com CEO and  founder  [TGT]   thinks Amazon should be really worried about competitor Walmart  but could fight back with another big acquisition.
"I think this is a decade-long price fight. Every quarter is a new round  but Walmart's coming back "  Johnson  said on CNBC's "Fast Money."
The former J.C. Penney CEO has been bullish on Walmart since at least February  when he appeared on "Fast Money" and called the big box retailer's rally. On Thursday  Walmart shares had their best day in nine years. With stock up 44 percent year-to-date  Walmart appeared to confirm  Johnson 's predictions that it could be Amazon's biggest threat.
Amazon may be growing fast  but  Johnson  thinks Walmart has a decided advantage with its preexisting brick-and-mortar infrastructure.  He  explained that most Americans live near a Walmart where they can buy most of what is available on Amazon.
And  Johnson  maintains that Amazon's distribution centers are more expensive and less efficient to run than Walmart's store and warehouses.
"They forward deploy inventory into things called warehouses  that are really stores. They are a lower cost operation than amazon's distribution centers  " Johnson  said.
As for Amazon   Johnson  thinks acquisitions like Whole Foods  are a good move for the internet retailer. And Target is right on brand.
"Whole Foods is to grocery  what Target is to mass. It's the upscale discounter "  he  said.
While  Johnson  doesn't anticipate that mega-acquisition anytime soon   he  said  he  does think Target has all the right amount of space in all the right places for Amazon to stay on top of the competition.
"Target's got 1 500 stores on Main and Main of every city in the country  " Johnson  said.