Ex-Walmart CEO Bill Simon Sees Big Retail Dominating 2026 As Smaller Players Fight To Survive

• The big players were able to mitigate some of the uncertainty brought forth by Trump’s tariffs this year and are now using artificial intelligence to make their operations more efficient, Simon said. 
• Simon, however, noted that several companies have started to respond to the dip in mall traffic including Macy’s, Dillard’s, and Kohl's.
• However, smaller players have challenges ahead of them, the former CEO noted.  

Former Walmart U.S. (WMT) CEO Bill Simon said on Wednesday that he expects bigger retail players will continue to fare well over the coming year while the smaller and mid-range players struggle.

“Well, I think scale is going to continue to win,” Simon said in an appearance on CNBC while projecting a good year ahead for big players in the retail segment including Walmart, Costco and Amazon. The big players were able to mitigate some of the uncertainty brought forth by Trump’s tariffs this year and are now using artificial intelligence to make their operations more efficient, Simon said.  

“And I think the bigger is going to keep getting bigger. And you know, the smaller and the middle guys are going to struggle,” he said. While WMT shares have gained 24% this year, AMZN stock has added 6% while Costco shares dipped 6%.

Smaller Players Continue To Fight

Simon, however, noted that several companies have started to respond to the dip in mall traffic including Macy’s, Dillard’s, and Kohl’s.

“I think Macy's had a couple of good quarters now. You've got guys like Dillard’s who sort of found a way to navigate through it, and then you've got guys who are just starting to figure it out. Kohl’s has a leadership transition. Michael Bender is taking over there. He's a terrific, terrific leader, but they've got their challenges ahead of them,” Simon said. “If you can't find a reason to be, then you're not going to be.”

How Are Stocktwits Users Reacting?

On Stocktwits, retail sentiment around WMT trended in the ‘extremely bearish’ territory at the time of writing, while sentiment around  AMZN and COST stayed at ‘bearish’ levels.

Sentiment around Macy’s and Dillard’s also stayed in the ‘bearish’ territory at the time of writing.

Shares of Macy’s and Dillard's have added 31% and 42%, respectively, this year. 

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