Walmart vs Target — Who is winning shopper's delight

Customer behaviour is changing as inflation hikes
A representational picture of shopping. — Canva
A representational picture of shopping. — Canva

Walmart and Target, one of the favourite big-box stores among customers, are in a bit of a showdown lately. They're like two friends competing to win customers’ hard-earned dollars. But one is riding high while the other is struggling to keep up.

Target did not quite hit the sales bullseye Wall Street expected for the last quarter. On the other side, Walmart, the mega-grocery store, surprised everyone by surpassing revenue expectations.

To top it off, Target is a bit gloomy about the rest of the year, while Walmart is looking all optimistic and jazzed up.

Why the difference? It's all about what they are selling. Walmart, the grocery guru, rakes in more than half of its cash from selling essentials, like groceries. 

But Target is more into fancy stuff like clothing, jewellery, and other tempting products. The things customer might skip when they are watching their wallet.

Target’s crowd is pretty posh, while Walmart’s is a bit more varied. So, when people are splurging on Taylor Swift concerts or European getaways, Target feels the effects more than Walmart.

Nowadays, customers are tightening their purse strings blaming it on the rising prices of food and other essentials. Both Target's boss and Walmart's money guru say the customers are being pickier about how they spend. 

But the customers loosen up those purse strings when the retail chains give a good deal or a holiday.