Walmart (WMT) currently has a leg up on some of its competitors as an increased number of consumers have been flocking to the retailer’s stores in the midst of the holiday season.
In Walmart’s third-quarter earnings report for fiscal year 2025, the retailer revealed that it saw a 5% year-over-year increase in its U.S. comparable sales. This boost in sales contributed to Walmart enjoying a 5.5% increase in revenue during the quarter.
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In preparation for the holiday season, Walmart kicked off its holiday deals in October, earlier than expected, giving its shoppers a “holiday head start.”
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“We know many of our customers are beginning to prepare for their holiday celebrations early, and we’ve adapted our approach to best meet their needs,” said Walmart U.S. Executive Vice President Latriece Watkins in a September press release.
Walmart has also been offering customers early morning delivery that starts at 6 a.m. and express delivery that delivers orders in as little as 30 minutes. It also recently expanded its delivery to additional areas across the nation.
Walmart gives Christmas shoppers one last chance
While Walmart stores will be open on Dec. 24, Christmas Eve, from 6 a.m. to 6 p.m. and will be closed on Christmas Day, the retailer has provided extended shipping cutoff dates for last-minute holiday shoppers.
Walmart is now giving customers until 12:30 p.m. Dec. 23 to order and have gifts delivered by Dec. 25, which extends the previous deadline by two days.
Customers also have until 4 p.m. Dec. 24 to put in orders for express delivery. Walmart+ members will be eligible for one free express delivery until Dec. 31.
Also, if Walmart shoppers want to access same-day pickup and delivery, they have until 12 p.m. Dec. 24 to put in their orders.
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After initially kicking off its holiday deals in October, Walmart is giving customers until Dec. 24 to take advantage of its “Last Minute Gifts” event, which started on Dec. 9
The event features deals such as $40.55 off a Piezano Pizza Oven and $110 off a Flashforge 3D Printer for customers who shop online or in stores.
Unlike Target, Walmart is expecting high holiday sales
As Walmart anticipates a thriving holiday season, it has high hopes for its holiday sales. In its latest earnings report, it revealed that it expects its fiscal year 2025 net sales to increase by 4.8% to 5.1%, which is higher than the 3.75% to 4.75% increase it predicted in August.
While Walmart has a positive sales outlook, its main competitor, Target (TGT) , has predicted “flat” holiday sales after the company noticed that its customers have recently been pulling back on their spending.
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“We're focused on planning the business cautiously based on the volatility we've encountered so far this year,” said Target Chief Financial Officer Jim Lee during an earnings call last month. “Our expectations also reflect some unique attributes of this year's calendar including the loss of five shopping days between Thanksgiving and Christmas and the shift in this year's fiscal calendar after last year's 53rd week.”
R.J. Hottovy, head of analytical research at retail-analytics company Placer.ai, observed that consumers appear to be favoring Walmart’s deals more than Target’s.
"We’re operating in an environment where many consumers are focused on stretching their household budgets and prioritizing stores offering the best deals,” said Hottovy. “While Target has reduced prices on everyday essentials, Walmart’s price rollbacks and assortment updates in general merchandise — particularly in home, toys, and apparel — seem to have resonated more with consumers this past quarter. These discretionary categories are critical for the holiday season, driving Walmart’s optimism and Target’s more cautious outlook."
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