Despite a market driven by fears of Amazon.com Inc. (AMZN), rival brick-and-mortar retailers Walmart Inc. (WMT) and Target Inc. (TGT) will give the Seattle-based tech behemoth a run for its money, according to "Shark Tank" star Kevin O'Leary in an interview with CNBC.

While Amazon stock has gained a whopping 49.1% year-to-date (YTD) to $1,743.07, the co-founder of O'Leary Funds noted that Walmart and Target don't have the same "insane" price-earnings (P/E) ratios, yet are "making all the right tactical moves." (See also: Amazon Buys PillPack—Rx Chain Stocks Lose Billions.)

"If you look at behemoth big boxes that are going to survive the next decade against Amazon, I would put Walmart in that basket, along with Target," said the investor and author in an interview with CNBC on Tuesday. "Because if you look at what they’re doing and the kind of people they’re hiring on their teams and the efforts and the logistics they’re putting in place, they look like survivors to me."

Brick-and-Mortar Retailers in the Digital Space

On Tuesday,  Arkansas-based Walmart announced that it would make a long-anticipated push into New York City, with an e-commerce fulfillment center in the Bronx for its Jet.com unit. The move has been viewed as a major step in bolstering the world's largest retailer's same-day grocery delivery service in New York to compete against Amazon's free two-day delivery for its Prime members. Earlier this year, Walmart announced plans to grow its online grocery delivery service to roughly 800 stores by the end of 2018. 

O'Leary applauded Walmart for the new distribution center, indicating that centers like these will pave the way for "hourly delivery" in "large metropolitan areas."  

Minneapolis-based Target has also invested billions in revamping its physical stores and building out its digital business with the acquisition of online delivery service Shipt. 

AMZN trades at a P/E multiple of 218.2, compared to Walmart at 29.1 and Target at 14.4. Walmart stock is down 12.2% YTD while Target shares are up 19.3% and the S&P 500 index gained 2.3%. (See also: Can Amazon Help Snap Beat Instagram?)

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