Stock Wars: Target Vs. Walmart

Stock Wars: Target Vs. Walmart

Photo courtesy of Walmart. 

Target (TGT) and Walmart (WMT) both opened their first stores in 1962. The two have a lot in common, but also key differentiators that set them apart. 

Today, we take a look at the two retailers compared side by side.

Retail Strength In The US: There are now 4,753 Walmart branded stores in the United States. Walmart’s U.S. segment contributed $341 billion in fiscal 2020, representing 66% of the company’s annual revenue.

A key differentiator between the two retailers is Walmart’s ownership of Sam’s Club. A membership warehouse, Sam’s Club competes with rival Costco COST in the U.S. with 600 stores.

Sam’s Club had revenue of $58.8 billion in fiscal 2020, representing 11% of Walmart’s revenue.

Target has 1,880 stores in the U.S. According to the company, 75% of the population lives within 10 miles of a Target store.

International Relations: One of the big differences between Target and Walmart is in their international businesses.

All Target locations are inside the U.S. In 2013, it tried to expand its business into Canada.

The two-year run saw 133 locations open in Canada, but a $2.1-billion loss for the parent company.

The Walmart International segment has over 5,900 units and serves 100 million customers weekly in 26 countries. In 1991, Walmart opened its first international store in Mexico. Walmart’s international segment had a fiscal 2020 revenue of $120.1 billion, representing 23% of the company’s total.

Digital Sales At Walmart, Target: Target’s recent second quarter saw comparable sales growth rise 24.3%, the best-ever gain in company history, thanks to year-over-year digital sales growth of 195%.

The strong digital gains have helped Target gain $5 billion in market share in 2020. Target has gained 10 million new digital customers so far in 2020.

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