Shoppers Look to Save by Switching to Walmart From Target

Consumers are flocking to Walmart over Target for a few reasons, but the main attraction appears to be more budget-friendly prices.

A recent poll by CNBC and Morning Consult found that nearly 80 percent of consumers were cutting back on spending for nonessential items, which include some clothing, luxury goods and electronics.

Consumers have also been more cautious about spending on food.

A survey posted by PYMNTS showed that 57 percent of shoppers are cutting back on nonessential grocery purchases, which can include snacks, coffee and canned goods.

However, Walmart, which sells a wide range of goods, from groceries to clothing, is seeing more demand.

The retailer's same-store sales in the U.S. rose by 6.4 percent in the latest quarter.

Target experiened a 5.4 percent dip in that category.

Newsweek has reached out to Target for comment via email on Tuesday.

Shoppers Reveal Why They Have Turned to Walmart

Newsweek has spoken to a couple of shoppers who have in the past shopped at Target—but now favor Walmart—mainly due to inflationary pressures.

One of them is Audrey Boyce, vice president of public relations at Empathy First Media, who made the switch to Walmart about six months ago.

The 25-year-old from Houston, Texas, mostly looks for clothes, grocery items and household essentials when shopping at department stores.

While Boyce likes Target's store "atmosphere," which includes friendly employees, she does not love the prices compared with Walmart's.

"I am trying to save where I can and when there is more than a couple cents difference, I usually go to Walmart instead," she said.

Particularly, Audrey finds Walmart's grocery staples, including milk and eggs, to be more cost-efficient.

"For example, [an] 18 count of eggs at Walmart is $1.92 and at Target, it is $2.89 in my area. I also find that household items such as laundry detergent, cleaners and paper products are also much more expensive at Target than it is at Walmart."

Melissa Cid, consumer budgeting expert for MySavings, said that she switched from Target to Walmart last year.

The 37-year-old Miami, Florida, resident has done this for two reasons, including Walmart+, which costs $12.95 per month, or $98 per year.

The subscription comes with several perks, including free shipping on no-order minimums and a Paramount+ subscription.

Cid also said that Walmart's everyday prices are "hard to beat."

"Walmart has a wide variety of affordable store-brand products with a good reputation," she said.

"These numerous Walmart private labels are also surprisingly good quality across all departments and their prices have remained steady, even during the constant onslaught of inflation on our everyday lives."

Cid also said that Walmart has upped its game with "trendier pieces" at friendly prices in the clothing section.

How Target Can Win Them Back

While both Boyce and Cid continue to favor Walmart, they said they can be lured back to Target.

Boyce said she likes Target, not only because of the atmosphere but for the quality of its private-label items and the discounts available through its loyalty program, Target Circle.

But that's not enough to win her back right now.

"I think the only thing that would bring me back to solely shopping there would be a decrease in inflation bringing down overall prices and allowing me to spend a little bit extra at Target. Before the inflation started, I didn't mind spending the extra to shop at Target," she said.

Cid said that she could be won over if Target improves its Shipt membership, which costs $99 per year and provides free same-day deliveries.

But Target's membership does not provide free shipping on orders without a minimum spending requirement, unlike Walmart's.

"I would like to see Target get back to the basics and offer more variety from their private-label brands instead of focusing on the more expensive celebrity brands and Ulta beauty partnership," Cid said.