Walmart has an answer for Target’s big move

Over the past two years, rising interest rates, high inflation and uncertainty about the future have led consumers to be more cautious about spending. To address consumer concerns, both online and brick-and-mortar retailers have taken drastic measures to attract customers.

Walmart (WMT) is locked in fierce competition with (TGT) and (AMZN) for retail sales. Competition has seen competitors slash prices on thousands of items and upgrade their online platforms to attract more consumers.

Related: Walmart Unveils Latest Bid to Beat Amazon

In May, Walmart said it cut prices on 7,000 items to encourage higher sales in its stores. Walgreens (WBA) and AmazonFresh followed Walmart’s lead. Each separately said they, too, were dropping prices on thousands of items.

Target joined the fray this summer, saying it was dropping prices on 5,000 frequently purchased items. In June, the Minneapolis-based retailer also enhanced its online presence when it partnered with global commerce platform Shopify to offer a selection of its popular merchants and their products on Target Plus, its third-party digital marketplace.

Walmart responded to Target’s move with a significant retail play against online competition as it expanded its e-commerce platform to introduce new lines and expand existing ones.

Miami, Fla., Hallandale Beach, Walmart store, cashier and checkout counter. (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images)

Jeff Greenberg/Getty Images

Walmart is expanding its e-commerce platform

Walmart Marketplace, the retail giant’s e-commerce platform, made a huge announcement to Ulta cosmetics retailers on August 27 (ultra) and Sephora as it introduced its new Premium Beauty online, offering more than 20 new brands including COSRX, T3 and Beachwaver for skin care, hair care and hair tools.

Related: Walmart is making an unexpected change to how it will ship items

The online retailer targeted Amazon, eBay (EBAY) and (ETSY) as it expanded its Walmart Restored platform for refurbished electronics and small appliances, which it launched in July 2022. The retailer launched Resold at Walmart, its first digital destination for pre-owned items across categories and conditions ranging from performance managed. sellers.

Resold at Walmart now attracts 1,700 sellers with 5 million items offering a selection of goods including luxury fashion, electronics, collectibles, sporting goods and more.

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• The target strategy prevails while Macy’s spirals with the opposite plan

Collectors looking for collectibles such as action figures, dolls, trading cards, sports memorabilia, comics, records and musical instruments can take advantage of the Collector’s Store, where sellers can activate pre-orders, including Walmart-exclusive releases. Eligible sellers can enjoy 0% commissions on collectibles until October 31st.

“We execute on strategic priorities at Walmart that help us become customers’ first choice—every day, every season, for every item. Walmart Marketplace is a key component of this mission,” said Tom Ward, executive vice president and chief e-commerce officer, Walmart US, in a statement: “We know the importance of personalized, seamless omnichannel experiences, and Walmart continues to advance its digital and fulfillment. capabilities, including the new categories and features we announced today, that improve the overall customer and seller experience on Walmart.com.”

Walmart’s global e-commerce sales topped $100 billion in fiscal 2024 — about 16 percent of its total — and its U.S. e-commerce business has generated double-digit growth for six consecutive quarters. Walmart Marketplace has generated sales growth of more than 30% in each of the past four quarters.

Walmart Marketplace tire sellers this year teamed up with Walmart Car Care Centers in 2,300 Walmart Supercenters, allowing customers to order eligible tires from online sellers to be shipped to a local Walmart Supercenter for installation. More than 4,600 Walmart stores nationwide accept Marketplace returns.

So who is winning the fight so far? If you ask investors, it’s Walmart — at least in 2024. Its stock is up nearly 47% this year. Amazon shares rose 17.5%. Target, which has faced a lot of problems in recent years, is still up 7.9%.

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