There are several reasons why consumers flock to Walmart over Target, but the main attraction appears to be more budget-friendly prices.
A recent poll by CNBC and Morning Consult found that nearly 80% of consumers are cutting back on spending on non-essential items such as some clothing, luxury goods and electronics.
Consumers are also becoming more cautious about spending on groceries.
A survey posted by PYMNTS found that 57% of shoppers are cutting back on non-essential grocery purchases such as snacks, coffee and canned goods.
But demand is rising at Walmart, which sells a wide range of products from food to clothing.
The company’s U.S. same-store sales increased 6.4% in the latest quarter.
Target fell 5.4% in the same category.
newsweek Target was contacted for comment via email on Tuesday.
Shoppers reveal why they turned to Walmart
newsweek spoke with several shoppers who shopped at Target in the past but now prefer Walmart, mainly because of inflationary pressures.
One of them is Audrey Boyce, vice president of public affairs for Empathy First Media, who moved to Walmart about six months ago.
When the 25-year-old from Houston, Texas, shops in department stores, he primarily looks for clothing, groceries, and household items.
Boyce likes the “atmosphere” of Target stores, including the friendly employees, but she doesn’t like the prices compared to Walmart.
“I try to save as much as I can, but if it’s more than a few cents difference, I often go to Walmart instead,” she said.
In particular, Audrey feels that Walmart’s groceries, such as milk and eggs, are more cost-effective.
“for example, [an] In my area, 18 eggs are $1.92 at Walmart and $2.89 at Target. We also found that household items like laundry detergent, cleaners, and paper products were also much more expensive at Target than at Walmart. ”
Melissa Sid, a consumer budget expert at MySavings, said she switched from Target to Walmart last year.
The 37-year-old Miami, Florida, resident did this for two reasons, one of which is Walmart+, which costs $12.95 a month, or $98 a year.
This subscription comes with several benefits, including free shipping with no minimum order and a Paramount+ subscription.
Sid also said that Walmart’s everyday prices are “hard to beat.”
“Walmart offers a wide selection of well-priced, reputable store brand products,” she says.
“These numerous Walmart private brands are also incredibly high quality in all departments, and their prices have remained stable despite the constant inflation that invades our daily lives.”
Sid also said that Walmart has become more competitive by offering “trendy items” at affordable prices in its clothing aisle.
How Target is winning them back
Mr. Boyce and Mr. Sid said they continue to support Walmart, but said it could be drawn back to Target.
Boyce said he likes Target not only because of its atmosphere, but also because of the quality of its private label products and the discounts available through its Target Circle loyalty program.
But that’s not enough to get her back now.
“I think the only thing that would bring me back to just shopping there is if inflation goes down and overall prices go down and I get to spend a little extra at Target. “I was willing to use it to shop at Target,” she said.
Sid said Target might be able to convince her if it improves its Shipt membership, which offers free same-day delivery for $99 a year.
However, unlike Walmart, Target’s membership does not offer free shipping on orders without a minimum purchase requirement.
“Rather than focusing on pricier celebrity brands or the Ulta Beauty partnership, I would like Target to go back to basics and offer more variety from its own private label brands,” Sid said. Told.
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Newsweek is committed to challenging conventional wisdom, finding common ground and finding connections.