Compete Blog: Target vs. Wal-Mart - Online Conversion Battle Heats Up
Through a special arrangement, presented here for discussion is an excerpt of a current article from the Compete Blog. Compete Inc. is a web analytics company that focuses on understanding how consumers use the internet.
Last month, Wal-Mart attracted 32.1 million visitors to its website versus 27.2 million online visitors for Target. Of those, 47 percent looked at a product at Wal-Mart.com compared to 31 percent of Target visitors. However, among shoppers who viewed a product, Target had a higher shopping cart interaction rate and conversion rate.
Despite the slight lead in conversions, more Target customers abandon their carts than Wal-Mart shoppers. Forty-seven percent of shoppers who begin checking out at Target do not complete their purchases, where as 35 percent of shoppers at Wal-Mart abandon their carts.
In general, Target leads in purchase rate and Wal-Mart boasts a smaller shopping cart abandonment rate. But how do more loyal consumers shop online?
Retailer credit card holders represent some of the most loyal, and valuable, customers. Among shoppers who accessed their credit card accounts, conversion rate for Wal-Mart shoppers edges ahead of Target to a 14 percent rate compared to Target's 13 percent. Wal-Mart shopping cart abandonment does not change much, averaging 33 percent of shoppers versus 35 percent. Target's abandonment rate, however, drops from 47 percent to 38 percent, narrowing the gap to just above Wal-Mart's rate. It's no surprise that competition is extremely fierce between these two rivals and I expect things to heat up even more as retailers gear up for back-to-school and the holiday season.
Discussion Questions: Why do you think target.com is gaining a higher cart interaction and conversion rate than walmart.com? Are you surprised at the significant cart abandonment rates (47 percent at Target, 35 percent at Wal-Mart)? What does the overall data say about the type of shopper visiting walmart.com versus target.com?