High inflation and deepening supply chain disruptions due to the Russia-Ukraine conflict and lockdowns in various countries have resulted in increased consumer spending. The core personal consumption expenditures price index rose 4.9% year-over-year in April. However, data suggests that consumers tapped into their savings to meet their daily expenses. Given this backdrop, the popularity of discount retailers is expected to rise substantially. According to a CNBC report, consumers are rushing to discount stores that offer general merchandise at comparatively lower prices than traditional retail stores.
Walmart Inc. (WMT) and Target Corporation (TGT) are two leading discount store operators based in the United States. WMT operates retail, wholesale, supermarkets, other units, and e-commerce websites worldwide. The company operates through Walmart U.S.; Walmart International; and Sam’s Club. It also offers fuel and financial services and related products. TGT operates as a general merchandise retailer that offers food assortments, apparel, accessories, home decor products, electronics, seasonal offerings, and beauty and household essentials through its stores and digital channels. As of January 30, 2021, the company operated approximately 1,897 stores.
