Why Walmart has the upper hand over Target: Analyst

#walmart #target #consumer #ecommerce #retail
Walmart (WMT) saw strong e-commerce sales in its first quarter, with delivery business volume surpassing in-store pickups. TD Cowen Senior Research Analyst Oliver Chen joins The Morning Brief to break down the retail giant's performance as consumer wallets tighten amid sticky inflation. Chen calls Walmart a "top pick," saying it offers "both needs and wants" of the consumer. He says the grocery business remains critical to Walmart, accounting for over 50% of its revenue. However, the company also offers great value for bigger ticket items. He points to the Walmart+ membership program as an area gaining momentum, offering customers free shipping and savings on gas, among other perks. While Target (TGT) has been pushing higher-end apparel, like its collaboration with Diane von Furstenberg, Chen says that Walmart "does a great job" with staples like underwear and basic apparel. "The opportunity is for Walmart to be more like a lifestyle brand and apparel, and expand into dresses, amplify their presence in denim, and trade the customer up," he explains. He adds that the company has already started to remodel stores and add more private-label brands to appeal to higher-end consumers. "We also see what we say is 'customized moderation,' meaning customers are both scrambling and splurging, trading up and trading down...Everybody wants to look good and fashionable, and you can do that at a very good price," he says. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Melanie Riehl
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[@charliebrown6590]

Get woke Go Broke!

[@jetscreamer1]

I know you’re broke. Walmart is your Disneyland for amusement.

[@cnssegura]

Well, my family literally nickname Walmart "the store of/for the poor". That nickname should speak for itself. lol

[@PhatTony]

I dont care for either TBH but as far as Target goes, it could be the woke BS. Just sayin.