In the world of retail, it's becoming increasingly evident which big box retailer is gaining the upper hand this earnings season. According to Victoria Greene, the investment chief at G Squared Private Wealth, Target appears to be struggling, while its competitor, Walmart, has a profound understanding of its customers. This divergence in performance is expected to be highlighted when both companies release their quarterly earnings reports this week.
Target is set to unveil its results on Wednesday after the market closes, while Walmart will follow with its report on Thursday. As investors await these updates, Greene shared her insights on the two retail giants.
Greene has expressed a cautious stance towards Target, suggesting that she will avoid investing in the retailer until it clarifies its direction. Currently, Target's stock has plummeted more than 22% this year, despite a slight uptick of 2% this week. "I don't think Target knows who it wants to be anymore," Greene stated. Historically, Target had a clear focus, attracting suburban moms who enjoyed shopping, grabbing a Starbucks, and picking up trendy items. However, Greene notes that the retailer now seems caught in a dilemma regarding its stance on Diversity, Equity, and Inclusion (DEI) initiatives.
Greene elaborated that Target has somehow managed to alienate both conservative and liberal consumers, stating, "Somehow they managed to offend both the right and the left." This uncertainty has left Target at a crossroads, and Greene believes that a potential transition in leadership could help the company regain its footing. However, she anticipates that any change will not materialize in time to positively impact this week's earnings report.
In her analysis, Greene predicts that Target will likely experience declines in same-store sales and customer traffic. Although these losses may be somewhat mitigated by higher prices, the overall outlook remains grim. "This company needs to figure out who it wants to be," she emphasized.
In stark contrast, Walmart is experiencing a surge in performance, leaving no doubt about its dominance in the retail sector. The company's stock has appreciated by over 12% in 2025, and Greene expects a further increase following strong earnings performance. She anticipates robust traffic and same-store sales growth, along with a notable expansion in e-commerce activities.
Greene likened Walmart's position in the market to that of a heavyweight boxing champion, stating, "Walmart is the giant in the room. Walmart is Muhammad Ali to Joe Frazier, right?" This metaphor highlights Walmart's ability to outperform its competitors effectively. She commended Walmart’s strategic pricing during the critical back-to-school season, which has successfully driven traffic into stores. Greene added that Walmart's accessibility makes it a favorite among a vast majority of Americans.
"This is a company that knows what it wants to be, and knows where it is going," Greene noted. She emphasized that Walmart is well-equipped to remain competitive in a rapidly evolving retail landscape, showcasing its adaptability and customer-centric approach.
As the earnings reports for Target and Walmart are set to be released, the contrast between their performances is clear. With Target grappling with its identity and Walmart confidently leading the way, investors will be watching closely to see how these two retail giants navigate the challenges of the marketplace. The insights from Victoria Greene underscore the importance of clarity and direction in retail strategy, especially during uncertain economic times.
