Wal-Mart’s low-price message and emphasis on necessities are helping the world’s largest retailer grab new customers around the globe in a recession, while Target — with greater emphasis on trendy merchandise — has been struggling to hold on to its shoppers and is now turning to groceries for growth.
“Target is clearly making steps in the right direction,” said Craig R. Johnson, president of consulting group Customer Growth Partners. “Meanwhile, Wal-Mart continues to raise the bar.”
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According to the companies’ recent annual reports, here’s a breakdown of sales by merchandise categories for the latest fiscal year:
• Wal-Mart:
Revenue for year ended Jan. 31: $405.6 billion
Groceries: 49 percent
Entertainment: 13 percent
Furniture and electronics: 12 percent
Apparel: 11 percent
Health and wellness: 10 percent
Home: 5 percent
• Target
Revenue for year ended Jan. 31: $64.9 billion
Consumables, including groceries and health and wellness: 37 percent
Electronics, entertainment, sporting goods and toys: 22 percent
Apparel and accessories: 20 percent
Home furnishings and decor: 21 percent
