American big box retailers Walmart (NYSE:WMT) and Target (NYSE:TGT) have planned an early start to their official Black Friday offers this year, a WSJ report stated. The promotions begin as early as five weeks before the official launch date of November 25.
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After consumers’ pandemic-triggered buying spree ended, retailers were left with massive inventories at their stores. Neither online shopping nor in-store shopping has helped retailers offload their inventories this year. Inflation is already dimming the sales of non-essential items. Furthermore, companies have started offering huge discounts on “unwanted” products, which is hurting their margins even more.
At such stressful times, Walmart and Target have planned to give huge offers akin to the Black Friday sales early on in October to deal with the excess inventory issue and get the ball rolling ahead of the holiday season. Rival e-commerce giant Amazon.com (AMZN) has also declared a two-day Prime Early Access Sale starting October 11 to attract droves of customers.
Target Will Offer Half-Priced Electronics and Toys
Department store chain Target’s products are popularly sold both online and in nearly 2,000 physical stores. Target has planned both daily and weekly offers to start now up until November 25. Most of the big discounts will be available on TV sets, air fryers, and a massive 50% off on Beats by Dre headphones. Amid the dwindling macro background, Target has missed earnings expectations in the last two quarters.
Is Target Stock a Buy or Sell?
On TipRanks, Target stock has a Moderate Buy consensus rating based on 12 Buys and eight Holds. The average Target price forecast of $191.75 implies 25.2% upside potential to current levels. Meanwhile, the stock has lost 33% so far this year.
Walmart is Wooing Early Holiday Shoppers
Walmart runs a chain of hypermarkets, discount department stores, and grocery stores, and also owns the Sam’s Club retail warehouses. Walmart has planned four days of discounts this week and is offering huge offers on Apple watches, electric bikes, and other items. Its foray into same-day delivery and robotic automation to help with retrieving and dispensing orders has helped boost sales from its vastly spread-out physical stores across the nation.
What is the Prediction for Walmart Stock?
With 23 Buys and seven Holds, WMT stock commands a Strong Buy consensus rating. On TipRanks, the average Walmart stock prediction of $151.72 implies 17.3% upside potential to current levels. Year-to-date, Walmart stock has lost 9.5%.
Key Takeaways
The rising inflationary environment has dealt a blow to retailers worldwide. The uncertain macroeconomic landscape is hurting their sales and margins as customers try to save every penny they can, to prepare for the worst. Amid the chaos, offering early discounts to make the holiday season special may help boost sales for both Walmart and Target.
