What is the holiday shopping season going to entail for mega retailers such as Target and Walmart? The race to capture millions of dollars is on. The winner is yet to be said, but Target is making a strong push to win. Walmart is promising, but failing to deliver.
Walmart is in the midst of its worst slump in United States sales history. Five straight quarters of declining sales coupled with Executives management moves and departures is leaving the retailer is a perceived sense of panic. New President and CEO of Walmart U.S. Bill Simon thinks the Holiday season will be challenging, but a challenge Walmart will overcome and win.
Simon recently told analysts at the Goldman Sachs conference the core customer is still under financial distress. High fuel costs and housing failures is a still a main concern. A change in pricing strategy is the opportunity Simon sees to increase sales.
Added to the remarks from Simon, senior Vice President of entertainment for Walmart U.S. Gary Severson expected iPads would be on the shelves “later this year”. With two months left in the Holiday season, this statement has not come to fruition.
Target on the other hand posted better than expected results and continues to draw customers into their stores. The customers in Target are the customers who have now traded up from Walmart since the recession has loosened its grip.
With the addition of the iPad, Target is primed and ready to win this Holiday season. Target is following the lead of Best Buy with the iPad. Best Buy was the only retailer aside from Apple stores which sold the iPad.
With over 1700 stores, Target doubles its market share just by selling one item. Walmart definitely has some catching up to do.