According to retail show, Walmart's recent $500 million project to upgrade 117 locations has its "store of the future" looking distinctly more Target-like, with wider aisles, enhanced signage, expanded self-checkout zones, and much more.
Some specific features seemingly borrowed from Target include the new "Dollar Shop" and "Grab & Go" sections near the front entrance. These look rather like Target's Playground and the Taste of Target snack bar.
Walmart's redesign also features more try-it-out displays and a plethora of QR codes to add a digital layer to physical retail. On my visit to Target, there were QR codes galore.
Walmart is also working on in-app store maps to help shoppers locate specific items on the shelf — a feature that Target has had for years.
Target, for its part, seems to have taken more subtle cues from Walmart, such as redesigning floor plans in ways that encourage more meandering (and impulse buys).
More recently, some could say Target has become more Walmart-like in its focus on offering competitive promotions and a larger assortment of merchandise at lower price points.
Take Chief Growth Officer Christina Henninton's comments during the company's recent earnings call, according to an Alpha Sense transcript. "With a combination of everyday low prices, compelling promotions, and exciting savings events all season long, we aim to be the holiday destination for affordable joy."
Both are also responding to a changing retail landscape by leaning into a common set of strategies.
For one thing, both retailers are partnering with other brands to make mini stores in their stores. Brands like Reebok and Wrangler now have an official presence at Walmart, while Levi's, Apple, Ulta, and more have long had sections of their own at Target.
Small brands that started as direct-to-consumer operations, like Harry's razors and Olly gummy vitamins, have been sold at Target for nearly a decade, and now, these buzzy digital-first brands are commonplace at Walmart, too.
Both companies are also investing heavily in developing their in-house private label merchandise: Target has a whopping 45-plus owned brands, and Walmart's Great Value and Equate products are purchased by more than half of US consumers.
In both cases, the retailers seem keen to shed the perception of store brands being "generic" and increase the desirability — and reputation for quality — of their exclusive offerings.
Another striking similarity between the two is their increasing reliance on using stores to fulfill e-commerce orders. Target was early to this game with its stores-as-hubs strategy, but Walmart is finding success with a lot of the same moves, even as other retailers dial back their commitment to curbside and delivery.
Ordinary shoppers can't see it, but new and renovated stores for both Walmart and Target include a much larger footprint dedicated to collecting, packing, and sending digital orders. On top of that, both brands are using sorting facilities to route shipments in high-density markets more efficiently.
Differences remain, of course.
For starters, Walmart is still much bigger than Target, and a supercenter is typically about 50% larger than a Target store. There are also about twice as many Walmarts as there are Targets in the US.
The retail show has learnt that Walmart also tends to carry a broader range of merchandise and is considered unbeatable when it comes to rock-bottom pricing.
But the company says it is finding success in its effort to attract higher-income shoppers, while Target continues to emphasize affordability in its offerings.
Taken together, a shopper going to one of these rival brands for the first time could reasonably be confused about which store they were visiting. And for loyalists of one or the other, perhaps now is a good time to try out the other side.
(source: Business Insider)