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Walmart and Target have about 5,200 and 2,000 stores in the United States, respectively.
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Walmart’s focus on low prices helps it thrive during good and bad economic times.
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Most Americans live within a reasonable distance of a Walmart store.
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10 stocks we like better than Walmart ›
When it comes to traditional retail, Walmart (NASDAQ:WMT) and Aim (NYSE: TGT) It has a stronghold in the US and serves millions of consumers daily. However, stocks have followed two different paths lately.
If you are interested in investing in retail stocks and have to choose between the two in the long term, Walmart stands out as the best option.
Walmart has some advantages over Target when it comes to long-term success. First, it has always positioned itself as the go-to place for value and bargains, helping it serve low-income and budget-conscious shoppers. This helps Walmart thrive in both a prosperous and ailing economy.
Target, on the other hand, has positioned itself as a more premium brand and many of its prices reflect this. If money is tight, consumers have no problem skipping Target and heading to Walmart for deals.
Target also can’t compete with Walmart’s overall reach. It has more than 5,200 stores in the United States, compared to Target’s roughly 2,000. Many large cities across the country have Targets, but they are not as common in many parts of rural America. However, you can venture almost anywhere in the country and find a Walmart within a reasonable distance (except New York City).
That footprint gives Walmart a logistical advantage that no other retailer can compete with and is my pick in this matchup.
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