Target Corporation's food and beverage sales grew 7% in the quarter ended August 1, 2026, its fastest growth in that business in three years, yet the retailer still holds only about 5% of the US grocery market compared with Walmart Inc.'s 27%. The growth pulled shoppers into stores, with traffic rising 3.6% and snack sales up 15%, and Target plans roughly 600 new private-label food products over two years, expected to add more than $2 billion in growth. A nearly $1 billion tariff refund allowed Target to lower prices without hurting margins, and the company raised its annual sales forecast to about 5% from 4%. However, grocery still makes up less than a quarter of Target's merchandise sales, and its food business remains roughly 12 times smaller than Walmart's, with Target priced about 5% higher on identical items. Gross margin expanded to 33.7%, but home furnishings and apparel stayed roughly flat, showing grocery traffic isn't reliably spreading into the rest of the store.
Target CorporationGrocery sales grew 7%, fastest in three years, with traffic up 3.6% and snack sales up 15%
Walmart Inc.Target's grocery growth accelerates, though Walmart still dominates with 27% market share
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