BILLIONAIRE investor Mark Cuban says major retailers must strike the right balance between offering customers online retail and brick-and-mortar shopping, warning shoppers still “want both.”
In an exclusive interview with The U.S. Sun, the Shark Tank star said he believed consumers still wanted a “tactile” in-store experience for certain products rather than buying them product online.
Mark Cuban says shoppers still want a “tactile” in-store retail experience[/caption]
Mark Cuban says brick and mortar stores should remain due to customer demand[/caption]
Mark Cuban says retail brands must strike the right balance between in-store and online retail[/caption]
Cuban also acknowledged retailers including Walmart are downsizing their retail footprint amid a rise in e-commerce.
“People want to go shopping, they want that tactile experience,” Cuban told The U.S. Sun.
“And that’s changed now, people want a combination of both, and so 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.
“You know, they have to come up with the right balance.”
The tech billionaire noted that chains are ramping up their online offerings while closing some brick-and-mortar stores.
He expressed concern for the consumer, saying some shoppers still wanted to buy products in person.
“Walmart, their online business is growing and maybe their brick and mortar business isn’t growing as quickly but what matters is how things are happening together,” Cuban told The U.S. Sun.
Earlier this year, Walmart began a process of shuttering 23 stores across 12 states, driven by underperformance, rising operational costs, and an inability to reach new lease agreements.
The retail giant said the shift to online shopping and retail theft had taken a toll on its bottom line.
As of 2024, Walmart operates over 4,600 stores across the country.
The company has not ruled out the possibility of further closures.
Cuban warned against the closure of brick-and-mortar stores altogether.
RETAIL APOCALYPSE
The billionaire said American communities would “die” if policymakers and business owners don’t act to prevent the further closure of physical retail locations.
Amid growing concern over the nation’s so-called retail apocalypse – which has seen hundreds of store closures in recent years – the Dallas Mavericks minority stake holder said vulnerable people in communities across the country were being impacted by the closure of brick-and-mortar stores.
According to analysis by retail data provider CoreSight, there has been a 24% increase in store closures in 2024 alone.
Calling it “a big problem to solve,” Cuban said all levels of government should work with entrepreneurs to prevent a growing number of food and pharmaceutical deserts.
“If you just say, just let the market take care of it, we see what happens, communities die,” Cuban warned.
“And so we have to be open-minded. The way I look at it personally, there’s a problem to solve.”
BEST BUSINESS TIPS
The billionaire also shared his best tips for entrepreneurs, saying too many people approached their side hustle the wrong way.
He said many business people were making a big mistake by thinking they could be successful by working for someone else rather than for themselves.
With the November 5 Presidential election fast approaching, the Shark Tank star also argued businesses would be better off without politicians meddling in the economy, and insisted the next US president needed to “shut up.”
Cuban has endorsed Vice President Kamala Harris, joining her on the campaign trail at several key events in battleground states.
