Walmart vs. Target

In today’s big story, we’re looking at the rising similarities between Target and Walmart.

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Two of the country’s largest retailers are taking pages from each other’s playbooks as they adjust to a changing economic landscape.

From the vibes at Walmart’s “store of the future” to the proliferation of Target’s new low-priced deals, the similarities between the two stores are becoming undeniable, writes Business Insider’s Dominick Reuter.

The commonalities go beyond physical appearance or types of deals, Dominick points out. Their executives even sound like one another.

Christina Hennington, Target’s chief growth officer, recently said the retail giant wants to be a “holiday destination for affordable joy,” thanks to Target’s “everyday low prices.”

If that phrase sounds familiar, it’s because it’s been a key part of Walmart’s pricing strategy for decades.

Home Depot and Lowe’s have been cribbing ideas from one another for decades. And Walmart founder Sam Walton openly admitted he stole borrowed plenty of ideas from Sol Price, the originator of the wholesale club model.

But what makes the Walmart-Target dynamic so interesting is the distinct type of consumer they typically serve.

While there is bound to be some overlap, shoppers tend to gravitate toward one of the two stores. The dividing line is often economic status. Historically, upper-middle-class consumers opted for Target, while lower-income shoppers headed to Walmart.

However, stubborn inflation forced consumers to be more diligent with their shopping decisions. That’s led Walmart to see an increase in higher-income clientele, a trend they’re leaning into.

Meanwhile, Target is offering more competitive promotions in a bid to meet consumers at a more comfortable price point for them.

But both companies going after each other’s target audience isn’t about crushing the competition, Dominick told me. It’s more a representation of the current economic landscape.

Even if it’s about swapping customers, that’s a tricky strategy. A shift in a company’s core offering could alienate its most loyal customers.

After all, more than beating up on one another, these rivals have a bigger fish to worry about: Amazon.

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Dan DeFrancesco, senior editor and anchor, in New York City. Diamond Naga Siu, senior reporter, in San Diego. Hallam Bullock, editor, in London. Hayley Hudson, director, in London. Lisa Ryan, executive editor, in New York City.

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