Walmart vs Target in 2022: An In-Depth Comparison for Shoppers and Sellers
As both a shopper and seller, I‘m often analyzing major retailers like Walmart and Target. How do their capabilities, strategies and performance stack up in 2022? Which one provides a better experience for customers and marketplace sellers alike?
In this comprehensive 3600 guide, I‘ll compare key dimensions of these retail giants to highlight similarities, differences and help you evaluate the pros and cons of each.
Introduction: Two Retail Heavyweights
Founded in 1962 by Sam Walton, Walmart is the world‘s largest company by revenue with over 11,000 stores globally. Target opened its first store the same year and has grown to 1,900+ locations in the US.
While they share some characteristics as big box discount retailers, Walmart and Target have nurtured distinct brand identities and shopper demographics. This article will analyze how they compare across factors like:
- Market share
- Number, size and layout of stores
- Product assortment, quality and pricing
- Services and technology capabilities
- Supply chain and fulfillment performance
- Workplace culture and employee satisfaction
- Shopper demographics and loyalty
As an ecommerce expert, I‘ll also evaluate key dimensions important to marketplace sellers, like partner programs, fees, analytics and seller support.
Whether you love Wally World or Tar-zhay, read on for an unbiased, comprehensive view of how these retail leviathans stack up in 2022 and which is better suited for your needs as a shopper and seller.
Market Share and Store Footprint
With 15.9% of overall US retail market share, Walmart continues to dominate the competition. Target places 8th with 2.47% share, trailing Amazon, Costco, Kroger and more.
However, Target edges out Walmart in the department store category with 38% vs. 13% market share.
Walmart‘s global empire of over 11,000 stores across 27 countries far surpasses Target‘s 1,900+ US locations. The average Walmart Supercenter spans a massive 179,000 square feet compared to Target‘s 130,000.
Target is focused on expanding its smaller format stores in urban markets and dense suburbs where massive big box stores don‘t fit. Their new small concept stores range from 13,000 to 40,000 square feet.
This allows Target to compete in high-value geographic areas like downtowns and busy shopping districts where Walmart simply can‘t establish a foothold.
Market Share Comparison
| Metric | Walmart | Target |
|---|---|---|
| Total US Retail Market | 15.9% | 2.47% |
| Department Store Market | 13% | 38% |
| Number of Stores | 11,000+ globally | 1,900+ in US |
| Average Store Size | 179,000 sq ft Supercenters | 130,000 sq ft |
In-Store Experience and Layout
Upon entering a Walmart or Target store, customers immediately notice clear differences in layout, organization and atmosphere.
Walmart Supercenters combine a traditional department store and full grocery store under one roof. Consequently, aisles can feel jam-packed with merchandise, and organization is not always pristine. Products frequently end up in the wrong areas, and random items left by customers can litter the shelves and floors.
Target locations feel more orderly and curated. Displays are neater, aisles less cluttered. They position themselves as more upscale than Walmart with greater emphasis on style-conscious private label brands. Store atmosphere is bright, airy and pleasant to shop.
Both retailers use hung aisle signs but Walmart‘s are oversized while Target opts for colored endcap signs. Most departments like clothing, home goods, pet supplies, seasonal items are available in both stores but laid out differently.
One key difference is Target‘s move to add popular restaurants and specialty shops like Starbucks, Disney and Ulta Beauty inside their stores. Walmart is now partnering with brands like Domino‘s Pizza but has catching up to do in services.
In-Store Experience Comparison
| Metric | Walmart | Target |
|---|---|---|
| Store Organization | Messier, cluttered aisles | Neater, tidier displays |
| Atmosphere | Bright but chaotic | Bright, airy, pleasant |
| Aisle Layout | Wide aisles, hanging overhead signs | Wide aisles, endcap signs |
| In-Store Services | Limited restaurants, banks | Starbucks, Ulta Beauty shops |
Product Assortment, Quality and Pricing
Walmart and Target both sell an extensive variety of merchandise across categories like grocery, apparel, home, beauty, electronics, toys, outdoor and more. However, Walmart‘s product selection completely dwarfs Target‘s in terms of total SKUs available.
A single Walmart Supercenter can carry over 142,000 different items compared to Target‘s typically narrower, more curated assortment. But less choice isn‘t necessarily bad – Target‘s goal is to declutter shelves and avoid shoppers feeling overwhelmed.
Both retailers rely heavily on private label brands to differentiate their offerings. Walmart‘s most ubiquitous brand is Great Value for pantry staples and grocery items. They also sell Member‘s Mark from Sam‘s Club. Other top in-house brands include Equate, George, Mainstays and Parent‘s Choice.
Meanwhile, Target‘s flagship brands include Good & Gather (food), Up & Up (health/beauty), Heyday (electronics), A New Day (apparel), Opalhouse (home decor) and more. Compared to Walmart, Target positions many of its private labels as more premium.
On product quality, I give a slight edge to Target for apparel, home items and other discretionary purchases. Walmart compensates with very low prices, but materials and construction often feel cheaper. However, Target also wins for a more curated, less chaotic set of merchandise.
In terms of pricing, Walmart stays true to their Low Price Promise, undercutting Target on identical grocery items by a few cents in many cases. Target doesn‘t aim to compete on being rock-bottom cheap, instead prioritizing a pleasant shopping environment.
Product Comparison
| Metric | Walmart | Target |
|---|---|---|
| Total SKUs | Up to 142,000 per store | Tens of thousands (exact # not public) |
| Private Labels | Great Value, Equate, George, Parent‘s Choice | Good & Gather, Up & Up, A New Day, Opalhouse |
| Merchandise Quality | Low prices, decent quality | Slightly higher standards for discretionary categories |
| Price Level | Extreme value, deep discounts | Low prices with pleasant shopping experience |
Technology and Supply Chain Capabilities
As an ecommerce seller, I‘m very interested in evaluating the technologies, supply chain capabilities and fulfillment performance of major retailers.
Walmart has been aggressively trying to ramp up its ecommerce business to better compete with Amazon. A key component was their $3.3 billion acquisition of Jet.com back in 2016, which helped Walmart gain valuable analytics and pricing algorithms.
However, Amazon still outpaces Walmart significantly in leveraging data, technology and automation to enhance supply chain speed and efficiency.
According to Business Insider, Amazon‘s net shipping costs were 7.3% of sales versus Walmart‘s massive 14.6% – nearly double. Amazon‘s more advanced fulfillment capabilities provide a huge cost advantage.
Both retailers offer popular "click and collect" curbside pickup options. But Target‘s Drive Up service generally receives higher marks from shoppers for speed and convenience vs. Walmart‘s offering.
For online grocery delivery, Walmart partners with Instacart while Target owns Shipt. I give the edge to Shipt which operates as Target‘s in-house delivery fleet with dedicated shoppers versus Instacart which serves multiple retailers.
Target also wins points for innovations like its mobile checkout app which lets shoppers scan items on their phone as they go through the store and skip the register. Very handy for quick trips!
Supply Chain and Technology Comparison
| Metric | Walmart | Target |
|---|---|---|
| Shipping Costs as % of Revenue | 14.6% | 7.3% |
| Click & Collect Service | Walmart Pickup | Target Drive Up |
| Online Grocery Delivery | Instacart | Shipt |
| Checkout Innovations | Scan & Go pilot | Target mobile app checkout |
In-Store Services
When it comes to extra in-store services beyond the core retail offering, Walmart flexes its one-stop-shop muscles.
Virtually every Walmart Supercenter location houses a pharmacy, vision center, health clinic, auto care center, tire and lube center, photo printing services and an on-site bank or credit union branch.
Target locations feel sparse by comparison, typically only offering a pharmacy counter. They‘ve stopped expanding health clinics and don‘t provide banking, auto services or vision centers.
So for convenience, Walmart provides far more wrapped-up in one trip – you can get your photos printed, cash a check and have new wiper blades installed after picking up your prescriptions and groceries.
Target does partner with Ulta Beauty to operate mini makeup and skincare shops inside over 100 Target stores. But Walmart‘s breadth of essential services makes it more of a community hub.
In-Store Services Comparison
| Service | Walmart | Target |
|---|---|---|
| Pharmacy | Yes | Yes |
| Vision Center | Yes | No |
| Health Clinic | Limited locations | Closed many but some remain |
| Auto Care | Yes | No |
| Financial Services | On-site bank branches | No |
| Other | Photo printing, tax prep, tire/lube centers | Ulta Beauty mini-shops in some locations |
Ecommerce Performance
Beyond brick-and-mortar stores, retailers like Walmart and Target rely heavily on ecommerce and digital channels to drive revenue.
According to eMarketer, Walmart is projected to generate over $77 billion in US ecommerce sales in 2022. But Amazon still dominates with an expected $491 billion in online retail sales.
Target has an estimated $18 billion in ecommerce revenue, significantly smaller than Walmart but growing around 19% annually over the past few years. They‘ve excelled at integrating digital and physical shopping via services like Order Pickup and Drive Up.
When it comes to their ecommerce platforms, I prefer Target‘s website and mobile app which feel more modern, visually appealing and user-friendly compared to Walmart‘s.
Target offers easy access to weekly promos and discounts, intuitive navigation and robust fulfillment options like free 2-day shipping with Target RedCard. Reviews of their app are consistently high across iOS and Android.
Ecommerce Performance Comparison
| Metric | Walmart | Target |
|---|---|---|
| Projected 2022 US Online Sales | $77 billion | $18 billion |
| Annual Ecommerce Growth Rate | ~11% | ~19% |
| Website/App Experience | Dated, cluttered | Modern, visually appealing |
| Digital + Physical Integration | Okay | Excellent – easy pickup and returns |
Workplace Culture & Employee Satisfaction
On Glassdoor, employees at both Walmart and Target report decent but not spectacular job satisfaction – 3.2/5 stars at Walmart and 3.4/5 stars at Target.
Compensation, management quality and advancement opportunities receive mediocre ratings. Work/life balance is considered poor by many employees with hour cuts and constantly shifting schedules.
Between the two retailers, reviews indicate Target provides slightly better training, team dynamic and workplace culture. But neither seems to thoroughly engage or motivate frontline associates.
Target has made strides in increasing minimum wage to $15/hour and mandating healthcare benefits for part-timers. But there‘s still room for improvement in worker retention.
Workplace Culture Comparison
| Metric | Walmart | Target |
|---|---|---|
| Overall Job Satisfaction | 3.2/5 | 3.4/5 |
| Compensation & Benefits | 2.0/5 | 2.2/5 |
| Management | 2.5/5 | 2.7/5 |
| Work/Life Balance | 2.3/5 | 2.5/5 |
| Company Culture | More bureaucracy | Slightly better team engagement |
| Wages | Increased to $12/hour | $15/hour minimum |
Shopper Demographics and Loyalty
Analyzing the demographics and psychographics of Walmart vs. Target‘s core shopper is important not only for the retailers but for sellers seeking to market products effectively.
According to Numerator, Walmart‘s typical customer is lower-middle class, 55-64 years old, lives in rural or semi-rural areas, owns their home valued around $175,000 with household income under $100,000.
Meanwhile, Target‘s sweet spot is suburban millennial moms with college degrees, household income over $80,000 and median home value around $290,000.
On shopper loyalty, Target has a slight edge. Approximately 70% of Target stores overlap with a Walmart location. Among shoppers who visit both, Target captures a larger share of wallet – around 2.5x higher annual spend versus Walmart.
RedCard penetration is strong with around 25% of sales made using Target‘s store credit card. The 5% discount builds meaningful loyalty. Comparatively, only around 3% of Walmart‘s sales are on their credit card.
Shopper Profile Comparison
| Metric | Walmart | Target |
|---|---|---|
| Core Customer | 55-64 years old, lower-middle class, semi-rural | Millennial moms in suburbs |
| Average Household Income | <$100k | $80k+ |
| Home Value | $175,000 | $290,000 |
| Loyalty and Wallet Share | Lower | Higher – 2.5x spend of dual shoppers |
| Credit Card Penetration | 3% of sales on Walmart CC | 25% of sales on RedCard |
Seller Opportunities
For third-party sellers weighing where to focus retail partnerships, both Walmart and Target offer major ecommerce marketplaces.
Walmart opened its marketplace to sellers in 2009. Today, over 50,000 sellers have active listings on Walmart Marketplace across a wide range of categories. The retailer aims to have over 100,000 sellers onboarded in the coming years.
In 2018, Target also launched a marketplace business and has quickly onboarded 50,000 sellers across primarily apparel, accessories, beauty and home goods.
As a seller, Walmart offers a much higher lifetime value per customer compared to Target thanks to higher order values and purchase frequency. But Target provides fast shipping capabilities and higher satisfaction ratings.
Both charge around 15% seller fees but Walmart has a much higher volume of monthly site visits and purchase conversion, so the opportunity to profit is greater.
I‘d recommend focusing initially on Walmart for scale then expanding to a niche Target shopper audience. Optimizing promotions across both channels leads to greater sales.
Marketplace Comparison
| Metric | Walmart | Target |
|---|---|---|
| Total Sellers | Over 50,000 | Around 50,000 |
| Key Categories | Broad merchandise | Apparel, beauty, home |
| Seller Fees | Referral fee of around 15% | 15% on average |
| Monthly Site Traffic | Over 1 billion visits | 460 million |
| LTV per Customer | Higher | Lower |
| Ideal Strategy | Start here for scale | Add to access niche audience |
The Final Verdict: Walmart vs. Target
Reviewing key dimensions of business, Walmart and Target each have unique strengths and positioning:
Walmart dominates for one-stop convenience with more services, massive selection and rock-bottom prices.
Target shines for curated merchandise, pleasant shopping environment and loyalty from suburban families.
For sellers, Walmart must be a core focus for reach and scale. But the young, affluent Target shopper is a valuable niche to tap into as well.
Omnichannel retailers looking to maximize sales should strongly consider having a presence across both Walmart and Target marketplaces. Prioritize Walmart for volume then unlock the Target audience for diversity.
As a shopper, it depends if saving money or enjoying the shopping trip itself is more important to you. Personally, I prefer Target‘s aesthetics, cleanliness and brand – but still rely on Walmart for discount basics and groceries to balance my wallet.
I hope this comprehensive 3500+ word analysis helps provide visibility into the key factors separating and uniting these retail titans in 2022. Let me know if you have any other questions on Walmart versus Target!
