Walmart reported strong sales in the third quarter, with U.S. stores seeing a 5.3% increase, indicating confident customers and a robust economy. In contrast, Target had a disappointing quarter, suggesting consumers are pulling back after struggling with years of inflation. The Minneapolis-based retailer expects sales to remain flat in the fourth quarter.
Online shopping is growing in importance for both companies. Walmart’s U.S. e-commerce business grew 22% in Q3, while Target saw digital sales rise 10.8%. However, search data from Stackline reveals that Target is attracting slightly higher searches for seasonal ornaments and accessories compared to last year, while Walmart lags behind its 2023 pace.
A similar trend emerges in the seasonal lighting category, with Target’s 2024 search volume aligning with 2023, while Walmart’s numbers trail last season.
Walmart sales rise, Target struggles
Target has even outperformed Walmart in holiday storage item searches at times this year.
Survey results show that 45% of consumers plan to shop only online between Black Friday and Cyber Monday, while 48% anticipate shopping both online and in-store. Only 7% are committed to buying goods at brick-and-mortar locations exclusively. The stakes for winning or losing customers will be higher this year, as 22% of shoppers plan to spend more on gifts compared to last season, while 34% intend to spend less.
The remaining 44% have budgeted about the same amount. Both retailers will need to closely monitor trends and adjust their strategies to effectively capture the holiday shopping market. With mixed messages from their quarterly reports and online search data, it remains to be seen who will come out on top this holiday season.
