The insight: The gap between Target and its mass merchant competitors Amazon and Walmart is widening. While Amazon and Walmart are consolidating their grip on consumer spending after investments in value and convenience, Target’s largely discretionary assortment and diversity, equity, and inclusion (DEI) controversies are sharply curbing its appeal.
The three companies’ diverging paths illustrate how consumers’ priorities have changed amid economic uncertainty. Concerns over tariffs and reduced buying power are pushing shoppers to prioritize necessities—yet for some, where they make those purchases is increasingly dictated by their political beliefs.
Amazon keeps winning: Amazon was the most resilient of the three retailers in Q1. It has not yet seen any reduction in demand due to tariff uncertainty, CEO Andy Jassy said, and may have benefited as consumers stockpiled goods in anticipation of higher prices.