According to The Sun, Billionaire investor Mark Cuban emphasizes that major retailers must find the right balance between online retail and physical stores, noting that consumers still “want both.”
The Importance of In-Store Experience
In an exclusive interview with The U.S. Sun, the Shark Tank star highlighted the continuing consumer desire for a “tactile” shopping experience for certain products, as opposed to solely buying items online. Cuban acknowledged that retailers, including Walmart, are reducing their physical store presence as e-commerce continues to grow.
“People want to go shopping; they want that tactile experience,” Cuban explained. “That’s changed now; people want a combination of both. You may not get as many physical brick-and-mortar locations, but that doesn’t mean those large companies have to go out of business. They need to strike the right balance.”
Retail Trends and Store Closures
Cuban noted that many retail chains are enhancing their online offerings while simultaneously closing some of their physical locations. He expressed concern that some consumers still prefer to shop in person.
“Walmart’s online business is expanding, and maybe their brick-and-mortar business isn’t growing as quickly, but what matters is how these channels interact,” Cuban stated.
Earlier this year, Walmart announced the closure of 23 stores across 12 states, attributing the decision to underperformance, rising operational costs, and difficulties in securing new lease agreements. The retail giant has indicated that the shift towards online shopping and issues related to retail theft have adversely affected its profits. As of 2024, Walmart operates over 4,600 stores nationwide and has not ruled out the possibility of further closures.
Concerns Over Retail Apocalypse
Cuban cautioned against completely abandoning physical retail spaces, warning that American communities could “die” if policymakers and business owners fail to address the ongoing closure of brick-and-mortar stores. Amid increasing concerns over the retail apocalypse, which has led to hundreds of store closures in recent years, Cuban pointed out that vulnerable populations are particularly affected by the loss of physical stores.
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According to analysis by retail data provider CoreSight, there has been a 24% increase in store closures in 2024 alone. Cuban described the situation as “a big problem to solve,” urging all levels of government to collaborate with entrepreneurs to mitigate the rise of food and pharmaceutical deserts.
“If you just say, ‘Let the market take care of it,’ we see what happens—communities die,” Cuban warned. “We have to be open-minded. There’s a problem to solve.”
Business Advice from Cuban
In addition to his views on retail, Cuban offered advice for entrepreneurs, suggesting that many individuals approach their side hustles incorrectly. He emphasized that aspiring businesspeople often make the mistake of believing they can achieve success by working for someone else rather than pursuing their own ventures.
As the November 5 Presidential election approaches, Cuban also argued that businesses would thrive without political interference in the economy, insisting that the next U.S. president should “shut up.”
Cuban has publicly endorsed Vice President Kamala Harris and has joined her on the campaign trail at various events in battleground states.
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