Arsenal should have pushed to sign Pedro Neto in the summer instead of letting him join Chelsea.
The Premier League giants had been linked to Neto over the past few years, but never made a move.
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Instead, the ex-Wolves man made a big money move to Stamford Bridge, where he is impressing.
Arsenal let several attackers go in the summer, including Eddie Nketiah, Reiss Nelson and Fabio Vieira.
“When we talk about Neto – he’s the sort of player who Arsenal maybe could have signed to have given that competition to others players,” Walcott said on Match of the Day 2, discussing Neto scoring in a 1-1 draw between Arsenal and Chelsea on Sunday.
“That’s kind of what they need right now, to provide that competition.”