Target Struggles As Walmart Soars. Are These Boycotts Working?
Inside the numbers
Maybe you’re like me - I used to love shopping at Target. I’d run in to buy cleaning supplies and then get distracted by, oh, I don’t know, everything.
I’d browse the clothing department, then the shoes. I’d wander over to the makeup and accessories. I’d talk myself out of 88 things. Then I’d roam over to the home décor. Wait, do I need that mirror? What about that frame? These plastic stacking bins could be useful.
No. Hold up. I have to go. Okay, but maybe this coffee mug; it’s on sale.
Target was a destination. A treasure hunt. I made a day of it. I knew I’d find cute stuff and the prices wouldn't make my credit card melt. But over the years, the company merged positions and cut back on staff. Their investments in plexiglass cases for everyday items were a waste.
As Walgreens CEO, Tim Wentworth noted, “When you lock things up, you don’t sell as many of them.” Yeah, no shit.
The last time I was there, all the cases were left open.
The keys dangling from the locks.
I know times change and retail theft went way up after 2020, but why is Target taking such a beating while Walmart’s numbers are going up? They’ve both publicly pulled back on DEI.
Well, it’s complex.
I’ve never been much of a Walmart shopper. The stores were too big. I’d walk in, get bummed, and walk out. It was too much to navigate, and the merchandising felt like shopping in a warehouse. If I wanted a warehouse vibe, I’d go to Costco.
Over the years, Target has slipped. This year, as they’ve pulled back on DEI (which some shareholders are suing over), they’ve slipped even more. Many Target shoppers have called for boycotts, which are delivering the intended consequences.
Target projects their Q1 to be down. The company experienced “problems” with foot traffic in February.
“The backlash appears to be having some impact on the company as the stock price has continued to tumble since the announcement. On January 24, Target stock closed at $137.89. On Tuesday, March 4, the stock closed at $114.86. During the past month, Target’s stock has fallen nearly 15%.” - Apple News
But why is Walmart doing so well? They were one of the first companies to throw away DEI initiatives after January 20th. The public was yelling about it. But somehow their business is cruising.
Let’s talk about Walmart+.
Target Circle 360 is getting absolutely dog-walked by Walmart+.
Walmart+ is like Amazon Prime. It’s the company’s membership program that offers a ton of perks. It includes:
free shipping
free same-day pharmacy delivery
an option to return items without leaving your house. A truck comes to you to pick up your returns.
savings on gas
discounts on Burger King
auto care discounts
access to Paramount+
free online pet care - vets are available to field questions.
It’s also cheaper than Amazon Prime. Prime is $139 per year, and Walmart+ is $98 per year.
Target has a membership program, Target Circle, which is free. They also have Target Circle 360, which is $99 annually. However, the perks are lackluster. You get free shipping, more time to return items, and 5% off.
Target Circle 360 is getting absolutely dog-walked by Walmart+.
Walmart has been building a huge network of warehouses across the country. They’re in an excellent position to compete with Amazon. Not only that, they’re luring customers with deeper pockets.
“More of the well-to-do are shopping at Walmart. In February, 89% of households surveyed by Morning Consult earning at least $100,000 said they shopped at the retailer, up from 77% five years earlier. About 36% of high-income respondents surveyed by Morning Consult this year said they had a “very favorable” impression of Walmart, up from 27% in 2019.” - The Wall Street Journal
The company has had some knockoff hits lately, like the Birkin bag dupe that went viral.
So, what is it, exactly? Why has Target been hit so hard by customer outrage and boycotts, but Walmart continues to roller skate right into spring?
Well, size for one. There are 4,596 Walmart stores in the United States. Target has 1,978 stores. In some parts of the country, Walmart is it. If you need groceries or supplies, you go there. Walmart has crushed the smaller businesses that used to provide options.
Walmart also owns Sam’s Club. There are 599 of those.
Walmart is a behemoth. It is the largest retailer in America.
Check out the list below. Walmart is number one; Target is number seven.
It’s a lot easier to shake the company at the number seven spot than the number one spot.
But we feel more betrayed by Target. The anger is more visceral.
If you’re holding boycotts of your own, just know that the Walmart company is not feeling the heat; Target is.
Could Target be the destination shop again? Could it be the place to go on a treasure hunt after lunch while we sip iced coffee? Maybe. But it will need to lean into what made it special.
Target used to be an unapologetic ally.
Now, the shopping experience feels like browsing an oversized Walgreens.
When you waver on your values, you lose customers. Walmart has leaned conservative for many moons; this is not new. So, when they pulled out of their DEI commitments, everybody was like, “Yeah, of course. It is Walmart after all.”
But we feel more betrayed by Target. The anger is more visceral.
Target can make their mark again. But they need to come back and include all of us who loved them for their special finds, good deals, and inclusion. The company has lost its way and with it - lost revenue.
I don’t mind spending my money with bigger companies if I feel like they’re fighting the good fight (hello, Costco). Can Target turn it around? I don’t know. They’re feeling the boycott heat amid a very politically charged moment. All while Walmart quickly dusts its shoulder off and forges ahead.
It’s going to be a weird year in retail.
Let’s watch it.
We can make an impact with the dollars we spend - or don’t.
Kit Campoy is an accomplished retail expert and author. She leverages her two decades of leadership experience to inform and inspire.
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I have a theory about this, I live in an affluent area there are convenient Targets and Walmarts. I have never been to Walmart and as far as I know most people we know don’t go there either. I went to target all of the time but stopped when they pulled out of dei. I think at least where we are Walmart shoppers remain the same and probably don’t pay much attention to the political scene. Where as Target shoppers are a bit more discerning. Now I would say 90% of the people I know boycott target and never went to Walmart anyway.
I haven’t shopped at Walmart in decades because they support charter schools. I am a retired public educator. Walmart seems, to me, to be MAGA Mecca.