Target vs. Walmart

In 2022, Target generated over $109 billion in revenue, mostly from its stores, compared to $572.7 billion form Walmart, coming from stores, e-commerce and Sam’s Club.

Business Model ElementTargetWalmartSimilaritiesDifferencesCompetitive Advantage
Customer SegmentsFamilies, millennials, urban and suburbanFamilies, value-conscious shoppers, rural areasBoth target families and offer a range of products. Target has a presence in urban and suburban areas. Walmart caters to value-conscious shoppers and is often located in rural areas.Target’s focus on urban and suburban locations. Walmart’s strong presence in rural areas.Urban and Suburban Presence (Target), Rural Presence (Walmart).
Value PropositionStyle, convenience, qualityLow prices, convenience, one-stop shoppingBoth offer convenience and a variety of products. Target emphasizes style, quality, and a curated shopping experience. Walmart is known for low prices and one-stop shopping.Target’s emphasis on style, quality, and curated shopping. Walmart’s focus on unbeatable low prices and offering a wide range of products under one roof.Style and Quality (Target), Low Prices and One-Stop Shopping (Walmart).
ChannelsPhysical stores, e-commercePhysical stores, e-commerceBoth have a presence in physical stores and e-commerce.Target’s approach to physical store design and aesthetics. Walmart’s focus on large-format stores and distribution centers.Store Design and Aesthetics (Target), Large-Format Stores (Walmart).
Customer RelationshipsLoyalty programs, customer experiencePrice competitiveness, convenienceBoth build customer relationships through loyalty programs and a focus on customer experience. Target emphasizes these aspects. Walmart’s relationships often revolve around price competitiveness and convenience.Target’s approach to loyalty programs and enhancing customer experience. Walmart’s strong emphasis on offering the lowest prices and convenience to its customers.Loyalty Programs and Customer Experience (Target), Price Competitiveness and Convenience (Walmart).
Key ActivitiesMerchandise curation, private label productsProcurement, supply chain managementBoth engage in merchandise curation. Target offers private label products. Walmart focuses on efficient procurement and supply chain management.Target’s efforts in merchandise curation and offering exclusive private label products. Walmart’s emphasis on procurement efficiency and supply chain management for cost savings.Merchandise Curation and Private Labels (Target), Procurement and Supply Chain Efficiency (Walmart).
Key ResourcesBrand reputation, private label brandsSupply chain, distribution networkBoth rely on brand reputation. Target has a portfolio of private label brands. Walmart’s key resources are its extensive supply chain and distribution network.Target’s strong brand reputation and investment in private label brands. Walmart’s robust supply chain and an extensive network of distribution centers and stores.Brand Reputation and Private Labels (Target), Supply Chain and Distribution Network (Walmart).
Key PartnershipsFashion designers, exclusive partnershipsSupplier relationships, manufacturersBoth have partnerships with suppliers and manufacturers. Target collaborates with fashion designers and offers exclusive partnerships. Walmart maintains strong supplier relationships.Target’s focus on fashion designers and exclusive partnerships. Walmart’s strong supplier relationships and focus on direct procurement.Fashion Designers and Exclusive Partnerships (Target), Supplier Relationships (Walmart).
Revenue StreamsRetail sales, e-commerceRetail sales, e-commerceBoth generate revenue from retail sales and e-commerce.Target’s emphasis on style and curated products. Walmart’s focus on price competitiveness and a wide range of products.Style and Curation (Target), Price Competitiveness and Variety (Walmart).
Cost StructureMarketing, store maintenanceProcurement, logistics, store maintenanceBoth incur costs related to marketing and store maintenance. Target’s costs include marketing for style and curation. Walmart focuses on procurement and logistics efficiency.Target’s marketing costs for style and curation. Walmart’s emphasis on cost-efficient procurement and logistics to maintain low prices.Marketing for Style (Target), Efficient Procurement (Walmart).

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Target Revenue

Target generated $109 billion in revenue in 2022, compared to $106 billion in 2021 and over $93.5 billion in 2020.

Target Profits

Target generated over $109 billion in revenue and $2.78 billion in profits in 2022, compared to $106 billion in revenue and almost $7 billion in profits in 2021.

Target Revenue Breakdown

In 2022, Target generated $104.6 billion in revenue, with nearly $85 billion coming from stores and $19.7 billion from digital, compared to $92.4 billion in 2021, of which $75.8 billion from stores and $16.6 billion from digital.

Target Sales By Channel

Target generated most of its sales from its stores in 2022. Indeed stores’ sales represented over 81% of the total sales, while digital represented 18.6%. Yet, digital sales have grown from 8.8% of the pre-pandemic total to 18.6% by 2022.

Target Sales By Product Category

In 2022, a good chunk of the product category sold was Beauty & Household Essentials, which represented 26% of the total revenue, followed by Food & Beverage with 20%, Home Furnishings & Décor 19%, Hardlines 18%, and Apparel & Accessories 17%.

Target Employees

Target had 450K employees in 2022, compared to 409K employees in 2021.

Walmart Business Model

With over $572 billion in net sales in 2022, Walmart operates a differentiated Omni business model with three primary units comprising Walmart U.S., Walmart International, and Sam’s Club (a membership-only warehouse club), together with Walmart+. This subscription service includes unlimited free shipping, unlimited delivery from its stores, and discounts launched in 2021.

Walmart Revenue vs. Profit

Walmart generated over $572 billion in revenue in 2022 and over $13.6 billion in net profits in the same year. Compared to over $559 billion in revenue in 2021 and over $13.5 billion in net profits.

Walmart Revenue

Walmart generated over $572 billion in revenues in 2022, compared to over $559 billion in 2021.

Walmart Customers

Walmart had 230 million global customers in 2022, compared to 240 million customers in 2021 and 265 million customers in 2019.

Walmart Stores

In 2022, Walmart had 10,500 employees globally, compared to 11,400 employees globally, in 2021.

Walmart Employees

Walmart had 2.3 million associates globally in 2022, the same number in 2021. While in 2020, Walmart had 2.2 million associates globally.

Walmart Mission Statement

Walmart’smission can be summarized as “helping people around the world save money and live better – anytime and anywhere – in retail stores and through eCommerce.” While its vision is to “make every day easier for busy families.” Walmart defines “busy families” as the bull’s eye of its business strategy.

Walmart Organizational Structure

Walmart has a hybrid hierarchical-functional organizational structure, otherwise referred to as a matrix structure that combines multiple approaches. On the one hand, Walmart follows a hierarchical structure, where the current CEO Doug McMillon is the only employee without a direct superior, and directives are sent from top-level management. On the other hand, the function-based structure of Walmart is used to categorize employees according to their particular skills and experience.

Walmart SWOT Analysis

From humble beginnings just over 50 years ago, Walmart has become the world’s largest retail company. A single small discount store in Arkansas has now expanded to over 11,000 stores in 28 countries. Some reports suggest that the company makes $1.8 million of profit every hour.

Read Also: Walmart Business Model, Walmart SWOT Analysis, Walmart Mission Statement, Costco Business Model.

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