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