Former Walmart U.S. CEO Says 'Panic Saturday' is Brick-and-Mortar's Time to Shine
*By Samantha Errico*
Christmas is on Tuesday, which means Panic Saturday is upon us. Dec. 22 is expected to be the second-busiest shopping day at stores this year, falling short in foot traffic only to Black Friday.
Bill Simon, the former CEO of Walmart U.S., told Cheddar Friday that brick-and-mortar retailers are about to have their moment, since "the online guys are done, they can't get it there in time now."
Retailers are gearing up for a serious surge in foot traffic on Super Saturday, which is expected to bring in [$26 billion](https://www.cnbc.com/2018/12/20/retailers-ready-for-a-surge-of-super-saturday-shoppers.html) ー beating out Black Friday sales by $2 billion.
"This is not for the faint of heart," Simon said.
Amid the holiday shopping frenzy, Simon's curiosity lies in the "battle of toys." Of the contenders, he acknowledged Amazon for achieving major success online and Target ($TGT) for thriving in-store this season.
Back in September, Simon [predicted](https://www.cnbc.com/2018/09/21/walmart-will-soon-hike-prices-due-to-tariffs-ex-walmart-us-ceo.html) that Walmart ($WMT) would have to hike its prices if the trade war escalated. He said Trump's tariffs won't impact holiday sales this year, but if a trade agreement isn't reached, "I think you can start to see an impact into next year and definitely for next Christmas."
Meanwhile, Walmart ($WMT) and Amazon ($AMZN) are battling to "figure out what the next generation of shopping is."
"With Amazon investing in physical assets and Walmart investing in digital assets, I would expect the stocks at some point to start looking like each other," Simon said.
Amazon recently bought grocer Whole Foods, expanding its brick-and-mortar footprint, and Walmart acquired e-commerce platform Jet in 2016 to conquer online sales.
"It's not purely digital like Amazon or purely physical like Walmart used to be, and who figures out that intersection fastest and best I think will win," Simon said.
Walmart, which became the nation’s largest retailer by making low prices a priority, has found itself in a place it’s rarely been: Warning customers that prices will rise for goods ranging from bananas to car seats.
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American businesses that rely on Chinese goods are reacting with muted relief after the U.S. and China agreed to pause their exorbitant tariffs on each other’s products for 90 days. Many companies delayed or canceled orders after President Donald Trump last month put a 145% tariff on items made in China. Importers still face relatively high tariffs, however, as well as uncertainty over what will happen in the coming weeks and months. The temporary truce was announced as retailers and their suppliers are looking to finalize their plans and orders for the holiday shopping season. They’re concerned a mad scramble to get goods onto ships will lead to bottlenecks and increased shipping costs.
Shopping expert Trae Bodge discusses how talks between the U.S. and China is good news for now, but uncertainty remains for back-to-school and the holidays.
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