Traditional retailers racing to stake their claim in the e-commerce market are causing “clutter” in the broader retail industry, Gary Friedman, the chairman and CEO of RH, told CNBC on Wednesday.
“I think it’s going to be seen as kind of the lost decade of retailers,” Friedman said in an interview with Cramer, adding that with “the capital allocation over the last 10 years and people creating an unnatural shift to move their business online, there’s massively deteriorating operating margins.”
With Amazon on its way to capturing nearly half of the U.S. e-commerce market, the scramble among big-box and specialty retailers alike to sell their products online has led to a significant uptick in the industry’s e-commerce spending.
From Walmart doling out $3.3 billion to buy Jet.com in 2016 to longtime staples like Kroger partnering with e-commerce giant Alibaba, it’s clear that retailers are following the money — but for Friedman, online is just like any other outlet.
“We do over $1 billion online. You know, people think, like, ‘He talks about retail stores, he doesn’t believe in online,'” Friedman lamented, speaking from RH New York, the company’s newest gallery. “Online’s just another channel.”
To watch and read more about Friedman’s full interview, click here.