Walmart hits new highs and Target dives after earnings as rivals diverge even more

Michael Baker (epidemiologist)file Photo

It's as simple as this: They are losing share,

Baker said

We'll continue on our current strategy, stay in step with the consumer and make sure Target's doing the things that consumers across America expect from us,

he said

Would you be willing to trade some of the upside in those areas for even more consistency from quarter to quarter?"

UBS analyst Michael Lasser asked

The company's higher mix of discretionary products and somewhat premium price positioning — at least in the mindset of some consumers — remain headwinds relative to better performance discounters like Walmart,

Fitch Ratings senior director David Silverman said in a note

They're becoming increasingly resourceful in their shopping behaviors, waiting to buy until the last moment of need, focusing on deals, and then stocking up when they find them,

CEO Brian Cornell said during Target's third-quarter earnings call

Despite some of the macro headwinds we've seen — really for eight or nine quarters in discretionary categories — we continue to see a consumer who's shopping for those seasonal moments,

CEO Cornell responded

Target continues to lose customers in categories like household goods to Walmart and other more value-oriented players,

Global Data retail analyst Neil Saunders said in a note

As we look at the discretionary business, what we see is the consumer is willing to shop as long as it's new, it's on-trend, and at affordable price,

Gomez, the retailer's chief commercial officer, said

Our Target Circle week this quarter was one of our biggest yet,

he said

They’re very savvy at using those sorts of financial tools,

Saunders said

Brad Thomas (baseball)australian baseball player

The main takeaway here is that the American consumer is still being very value-conscious and increasingly shifting their dollars to Walmart from many other retailers, including Target,

said Brad Thomas, managing director at KeyBanc Capital Markets

A lot of it comes down to the company just not positioning itself well enough in what is a slightly more challenging market,

said Neil Saunders, managing director of the retail consultancy GlobalData

Heading to the grocery store was a bit daunting for consumers trying to make ends meet this quarter,

the TransUnion researchers wrote

Brad Thomas (baseball)australian baseball player

People went out and bought a bunch of stuff [during] the pandemic, and then stopped buying stuff for a couple of years,

Thomas said

The economy remains fundamentally healthy,

NRF president Matthew Shay said in a statement last month

They're being very patient, shopping for promos, looking for great value on those essential items that they need for their pantry,

Target Chairman and CEO Brian Cornell said on a call with reporters

We’re expecting this holiday period to be very consistent with that,

Walmart Chief Financial Officer John David Rainey told CNBC

We encountered some unique challenges and cost pressures that impacted our bottom-line performance,

Brian Cornell, chair and CEO of Target Corporation, said in the earnings release