In the Q1 performance results, Target, Walmart, and several other retailers faced many challenges due to rising costs and abrupt consumer behaviour shifts. The rising costs led Target’s net income to fall 52% to $1.01 billion year-over-year (YOY), while its comparable sales grew 3.3% YoY. Walmart enjoyed a comparable sales increase of 3.0%, but its net income went down 25% to $2.05 billion YoY. Target operating margin shrunk to 5.3% in Q1 from 9.8% in Q1 last year. The retailers experienced a 50% increase in luggage item sales as consumers resumed travelling after the pandemic-led restrictions were lifted. Consumers finding great deals and products helped Walmart gain a higher grocery market share, CNBC reported. On the other hand, Target also plans to attract consumers by adding more value, even if it has to manage increasing costs.

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