Walmart is crushing Target in 3 critical ways

  • Walmart has an edge over Target online. 
  • The retailer is beating Target in three key ways: convenience, digital capabilities, and value.

Walmart and Target are going head-to-head in the digital war against Amazon, and so far Walmart has the upper hand, according to Cowen & Company analysts. 

Walmart's e-commerce sales soared more than 50% in the most recent quarter, compared to 24% growth for Target.  

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In a research note, Cowen managing director Oliver Chen said Walmart is beating Target in three key ways:

1. Convenience

Walmart's sheer scale gives it the edge over Target in this category, Chen wrote.

Walmart has more than 5,000 locations nationwide, putting it within 10 miles of 90% of the US population.

25 hottest toys of 2017, according to Walmart:

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The 25 hottest toys of 2017, according to Walmart
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The 25 hottest toys of 2017, according to Walmart

Real Workin’ Buddies Mr. Dusty

Price: $40

Walmart

Disney Frozen 12-Volt Ride-On Sleigh

Price: $298

Walmart exclusive

Monster Jam Grave Digger 24-Volt Battery Powered Ride-On

Price: $398

Walmart exclusive

Fisher-Price Zoom 'N Crawl Monster

Price: $35

Imaginext DC Super Friends Batman Batbot Xtreme

Price: $94

Nerf Rival Nemesis MXVII-10K

Price: $88

FurReal Roarin Tyler, the Playful Tiger

Price: $117

Huffy Electric Green Machine 24 Volt Battery-Powered Ride On

Price: $199

Disney Junior Doc McStuffins Baby All in One Nursery

Price: $80

LittleBits Star Wars Droid Inventor Kit

Price: $99

Mattel Barbie DreamHorse

Price: $90

Mattel Cars Florida Speedway 2

Price: $100

MGAEntertainment LOL Surprise Fizz Factory

Price: $33

Num Noms Nail Polish Maker

Price: $45

New Bright 1:14 RC Dash Cam Rock Crawler

Price: $60

Walmart exclusive

New Bright 10 Inch Rc Tumblebee

Price: $25

Adventure Force Light Command Light-up Motorized Blaster

Price: $25

Walmart exclusive

Recoil Starter Set by Skyrocket

Price: $118

Soggy Doggy Board Game

Price: $19

Paw Patrol – My Size Lookout Tower

Price: $100

"Hatchimals Surprise"

Price: TBA

Details for this year's Hatchimals toy have not been released yet, but Walmart still expects it to be a big seller.

Pop-a-Balls Drop & Pop Ball Pit

Price: $50

Walmart exclusive

WowWee Fingerlings

Price: $15

Mayka Toy Block Tape

Price: $17 for a four-pack

Mickey's Transforming Roadster Racer RC

Price: $50

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The retailer is using its stores to make online shopping more convenient through services like in-store pickup at all its locations for online orders, curbside grocery pickup at more than 1,100 locations, and pickup discounts for online orders.

Target, meanwhile offers in-store pickup at just 1,828 stores.

2. Digital capabilities

Walmart has more than 70 million products on its website, free two-day delivery for orders over $35, and an "easy reorder" feature that lets customers track recent purchases in stores and online.

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It also has the advantage of owning Jet.com and other recent apparel acquisitions including ModCloth, Bonobos, MooseJaw, and Shoebuy, Chen notes.

3. Customer value perception

Walmart is viewed as a better value than Target.

"According to Cowen's Consumer Tracker analysis, satisfaction with prices at Walmart has improved in five of the past seven periods, including registering the highest score in the most recent period (80.1%) since we began tracking the data in December 2012," Chen wrote. "Meanwhile, at Target, satisfaction with prices has declined in six of the seven periods, including six consecutive periods."

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See Also:

SEE ALSO: Walmart is rolling out its massive online pickup towers to 500 stores

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