Target vs Walmart: The Power of Simple Value Over Purpose-driven Marketing

Read Time: 6 minutes

The divergent results of this year's Black Friday retail event offer a stark, high-stakes lesson for local media salespeople and ad agency professionals: simple, benefit-driven value messaging consistently trumps purpose-driven brand positioning when it comes to driving traffic and sales among the crucial middle-class consumer. This isn't just retail news; it’s a critical recalibration of marketing priorities that should inform how you talk to your local clients—from the independent auto dealer to the regional grocery chain.

The Black Friday Divide: Bags vs. Bargains

This holiday season, the contrast between two retail giants was undeniable, and it perfectly crystallized the pitfalls of sacrificing value for virtue.

• Target attempted to generate excitement with a tote bag promotion, leading to early crowds but ultimately disappointing merchandise and quickly dispersing shoppers. Incoming CEO Michael Fiddelke’s pre-Black Friday acknowledgment of frustration with performance was validated, continuing a theme of struggle. The core issue wasn't the giveaway; it was the perception that Target’s focus was elsewhere, not on delivering the fundamental retail bargain.
• Walmart, meanwhile, had a record-breaking Black Friday, simply opening its doors and watching an estimated 30 million shoppers pour in. Categories like electronics, furniture, and toys drove significantly higher sales. The message was clear: Walmart delivered on its core promise of price and convenience, and America responded by opening its wallets.

This performance gap is reflected in the numbers that matter to every client: Walmart is on track for over $700 billion in annual revenue, while Target will post just over $100 billion. In 2025, Walmart's same-store sales jumped 4.5%; Target's fell 3.8%. This trend is why Walmart's stock is up 8%, while Target has lost more than a quarter of its value.

Just a decade ago, both were fighting for the same middle-class shopper. The difference today is in their brand positioning and message execution, offering a critical case study for every local business owner struggling to allocate scarce ad dollars.

The Power of Crystalline Positioning

Over the last five years, Walmart has focused maniacally on one clear, consumer-centric message: “Save Money. Live Better.” This is an astute, old-school positioning that moves beyond a mere feature ("low prices") to a dual benefit: saving money (a rational claim) and the resulting emotional benefit ("live better"). It is tight, simple, and executed across every touchpoint. This is the gold standard for marketing that local media should be selling.

In contrast, Target embraced the mantra of "brand purpose," letting its marketing become increasingly dominated by DEI initiatives, Pride collections, and social justice commitments. While CEO Brian Cornell once defended these "bold commitments" as fuel for growth, the financial data now suggests it became a costly distraction from the core retail mission.

This is the key lesson for your local advertisers, who cannot afford distractions:

1. Consumer surveys on purpose are "wishful stuff." Just because consumers say they support brands with aligned values doesn't mean they will spend money there. As David Ogilvy taught us, people don't always do what they say. When the consumer is standing in a local store aisle or showroom, the decision is almost always rational and transactional: "What is the best deal for me right now?"
2. Purpose can alienate local segments. Target’s sales dropped over 5% in Q2 2023 after conservative hostility to its Pride merchandise. Local businesses thrive on broad community support. Promoting divisive purpose over universal value fractures the audience and risks losing entire segments of a local market—a risk a small business cannot absorb.
3. Purpose is generic and introspective. Messages centered on "DEI" or "sustainability" are often interchangeable and are about the company's stance, not "What's In It For Me" (WIIFM) for the consumer. Local advertising demands immediacy and relevance. The owner of a local tire store doesn't need to tell me their stance on climate change; they need to tell me they have the tires I need at the best price, and they can install them today.

The Action Plan for Local Media AEs and Agencies

Your local clients—from car dealers to plumbers to regional grocery stores—do not have the luxury of losing focus on the basics. The most effective advertising you can sell is advertising that focuses on the everyday benefits of Price, Product, Service, and Availability.

As you structure campaigns and advise clients, shift the conversation from brand identity to transactional performance:

• Champion Benefit-Led Creative: Insist that the core message—especially in high-frequency radio, TV, and digital audio—is built around tangible value and urgency. Use your media’s inherent ability to deliver a clear, repetitive message, such as "Best Price Guarantee," "Same-Day Service," or "Freshest Produce." Frame the creative around the customer's gain, not the company's virtue.
• Acknowledge the Post-Purpose Era: The decline in DEI language in S P 500 company filings (down 68% in 2025) suggests the C-suite is retreating to safer, more profitable ground. Remind local clients that while philanthropy and ethical conduct are vital, they belong in the Corporate Social Responsibility budget, not the marketing budget. The job of the marketing budget is to drive sales.
• Sell Clarity, Not Complexity, with Data: Target’s incoming CEO just announced his new three priorities: merchandising authority, guest experience, and technology. Notice what’s missing: purpose. They are getting back into their lane. You should advise your local clients to do the same. Show them how to use your platforms to communicate clear, compelling, and measurable reasons to shop today.
• Local Focus: Local media is inherently best positioned to leverage the local market data. Sell packages that tie into local events, local sports, and even localized weather patterns to communicate value (e.g., "Prep for the first frost with 50% off Antifreeze at [Local Auto Store]"). This high degree of localization is something national platforms struggle to replicate and creates a competitive moat for your clients.

The profitable validity of old-school, benefit-based branding has been unequivocally reaffirmed. The smart media play for 2026 is helping local businesses hammer home the value message that truly motivates the American shopper who is managing a household budget, not voting with their wallet on cultural issues. Focus on the value, and the revenue will follow.

Source: https://www.adweek.com/brand-marketing/how-target-lost-the-middle-class-and-walmart-cashed-in/?lctg=