The two retail giants are capitalizing on sustained investment in their technology foundations even as they face economic headwinds.

Thursday, Aug. 21, Walmart said its sales increased nearly 5% at U.S. stores that have been operating for at least a year. The retailer also raised its 2025 sales outlook with groceries which was a big driver accounting for more than 50% of its overall sales.

Walmart has a three pronged strategy to deal with tariffs, and is making sure shoppers aren't the only ones taking a hit.

Walmart's results WMT.N on Thursday show U.S. consumers across the spectrum are still flocking to the retailer's stores despite economic headwinds, but shares dipped as the company's margins ebbed and inventory costs rose.

Walmart delivered a mixed set of second-quarter results, underscoring the pressures of rising costs and tariffs on the world's biggest retailer. Adjusted earnings per share came in at $0.68 (£0.51), missing Wall Street estimates of around $0.

Fiddelke acknowledged many of these problems on Wednesday, saying Target was “urgently adjusting” to tariffs and changing consumer needs, embracing technology to automate manual work, and working to mend problems like slow decision-making, siloed internal goals, and a lack of access to quality data that would drive better inventory planning.

Walmart continues to gain momentum — and market share — as back-to-school shopping winds down, leaving competitors like Target struggling to keep up. Executives at both companies said they remain cautious about the all-important holiday shopping season,

It didn’t have to be this way. At the start of his tenure, Cornell, who the company announced yesterday will step down as CEO on February 1, was an outsider unafraid to move fast and break things. He had been CEO of a big PepsiCo unit, Michaels Stores, and Sam’s Club before that.