Big box retailers like Walmart and Target are thriving during the pandemic, thanks in part to becoming go-to destinations for Americans to spend their stimulus checks.
Both companies reported blowout second quarter results this week, with online sales at Walmart doubling from the same period last year and tripling at Target — the latter of which which also reported record high same-store sales growth of 24%. Executives at both companies attributed success in the second quarter to the impact of the 160 million stimulus checks distributed to Americans, part of the federal government's $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act.
Their success also comes alongside a growing list of retailers that have recently filed for bankruptcy and permanently closed stores during the pandemic, including Neiman Marcus, Lord & Taylor, J.Crew, and Brooks Brothers, among others.
Executives at both Walmart and Target said they experienced heavy sales spikes at the beginning of the quarter as the checks were being distributed, which then began to stabilize toward the end of the earnings period. Looking ahead, both seemed cautiously optimistic on calls with investors about forthcoming sales spike catalyzed by the anticipated second possible of stimulus checks, despite stalled deliberations on the matter in Congress.
"We're watching [sales] carefully and know a lot of conversation around the impact of stimulus, what this means going forward," Target CEO Brian Cornell said on a call with investors this week. "And we certainly hope there's a second round of stimulus for small businesses and American consumers."
We took a closer look at what consumers were buying from Target and Walmart with their stimulus money.
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