Toolkit #8 - The Walmart Revival: How the Discount Giant Reclaimed Gen Z and Won Over Wealthier Shoppers

After years of chasing Amazon and Target, Walmart is finally hitting it’s stride.

Target used to reign supreme in value—the "Tar-zhay" experience captivating millennials with its curated aesthetic and designer collaborations. But a shift was underway. Gen Z, cost-conscious and digitally savvy, were drawn to a different titan: Walmart.

Walmart, long synonymous with low prices, was quietly evolving. In addition to investing in their digital platforms, they embraced influencer marketing, showcasing affordable dupes of coveted items on TikTok. Their clothing lines became trendier, and their home goods section blossomed with stylish and budget-friendly options.

This evolution wasn't just about attracting younger shoppers. Walmart also made significant inroads among higher-income households. These shoppers, accustomed to Amazon and Target, were drawn to Walmart's competitive pricing, particularly for essentials like groceries.

Meanwhile, Target stumbled. Controversies surrounding their Pride collection alienated some customers, and their pricing strategy, particularly for essentials, faltered in the face of inflation.

However, this wasn't just about price.

Walmart understood the power of perception. They positioned themselves as the "cool" place to shop, where savvy consumers could score incredible deals without sacrificing style.

Key Takeaways for Retail & Marketing:

• Price Still Matters: In a challenging economy, value reigns supreme. Retailers must be acutely aware of price sensitivity and offer competitive pricing.

• Embrace Digital Trends: Social media platforms like TikTok are powerful marketing tools. Leveraging influencers and engaging with the right personalities and communities is crucial.

• Understand Your Audience: Tailor your offerings and marketing strategies to the specific needs and preferences of your target demographic.

• Build Strong Brand Loyalty: Cultivate a positive brand image and foster strong customer relationships through exceptional customer experiences.

The Walmart resurgence serves as a powerful reminder that even established giants—like Levi’s—can reinvent themselves and thrive in a rapidly changing retail landscape.

The Roundup

A collection of links to stuff I think are worth sharing.

You should be spending on mobile - Media consumption declined across most platforms in the first half of 2024, with the exception of the mobile usage.

Habits of high-income shoppers - Their journey starts in physical stores.

Habits of Gen Z shoppers - Their journey starts with social media, but often ends in physical stores.

Pinterest's Predictions - If you haven't solidified your 2025 content strategy yet, check out these insights into emerging trends in collaboration and content.

Spotify Wrapped - Understand your musical taste with this guide.

Good Airport Design - Explore how the world’s best architects have balanced efficiency and aesthetics when designing the perfect airport.