As a retailer in 2025, you almost have to adhere to a standard that ultimately determines your success.
The criterion isn’t customer relations (although treating customers well certainly helps) or shipping speed (which is also very important).
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This is how you compare to Walmart (WMT) and Amazon (Amazon) They are the world’s largest retailer and the largest online retailer in the United States.
Both hold millions of stock-keeping units (single items) at any given time, offering customers a wide selection at often unbeatable prices. They treat their customers well and offer fast and free shipping, which is just an added bonus.
Since both Walmart and Amazon are leaders in their respective fields, it will be difficult for other retailers to break into the one-stop shopping market. There are many other options (such as Sam’s Club, Costco, Kroger, and CVS), but these are still somewhat specialized or limited in scope. You can’t buy video games at Kroger, and you’ll have a hard time finding a wide variety of clothing at CVS.
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At the same time, many consumers now want free one- or two-day shipping, and many retailers are driving themselves out of business just to keep up with the trend.
But it’s not just selection and shipping. Most retailers are now expected to offer some kind of exclusive savings or benefits program. To make them compelling enough, retailers have to offer some kind of real benefit, which often gets them into trouble rather than helping them out.
Photo credit &col;Justin Sullivan/Getty Images
Target is a uniquely positioned retailer
Target is one retailer really making headway against Amazon and Walmart (TGT) .
America’s sixth-largest retailer may not be as big as the latter two stores, but it’s still a household name with nearly 2,000 stores across the United States
While it’s not Walmart’s 3,500-plus stores, Target makes up the difference in brand trust. In fact, there’s a legion of American shoppers who go out of their way to shop at Target instead of its larger competitors.
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Its loyalists are so loyal to Target that shoppers visit the store an average of 1.6 times per week. Since foot traffic is such a big part of the Target experience, that means if a store starts stocking more of the SKUs it’s confident will make customers happy, it can gain traction from the move and potentially make more profits.
Target to add thousands of new products
As a result, Target said on Jan. 9 it would add about 2,000 new products specifically geared toward health and wellness. The retailer said it has received a positive response as it increases its selection of healthy products, especially because many of the products are affordable.
To that end, about half of the 2,000 new items will be priced at $10 or less. Some new projects include:
- Functional and non-alcoholic beverages
- Beauty & HealthSelf-Care
- men’s health
- Nutrition and Gut Health Products
- health technology
- Sportswear and casual wear
About 600 of the products will be sold exclusively by Target. It’s part of the retailer’s efforts in recent years to expand its in-store brands, or so-called private labels.
It’s a big bet: In January 2024, Target added about 1,000 health and wellness products to its product library. But the retailer is already seeing the rewards.
Beauty and household staples, many of which fall under the wellness category, will account for about a third of Target’s annual revenue in 2023. Food and beverages account for approximately 23%.
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