Is Walmart Setting the Tone for Holiday Retail Competition?

Walmart Inc. WMT is setting the pace for the holiday season with its first big promotional push, “Walmart Deals,” running from Oct. 7 to Oct. 12. The supermarket giant is giving shoppers an early chance to score major savings before the holiday rush. 

The event spans across categories, including toys, fashion, electronics, home goods, seasonal decor, food and beauty. Customers can shop online, through the Walmart app, or from stores, and choose from flexible delivery options ranging from early morning drop-offs to express service in as little as 30 minutes.

While everyone can enjoy the savings, Walmart+ subscribers are given a five-hour lead on Oct. 6, giving them the first chance to secure the most sought-after deals. Discounts run as high as 50%, and the assortment strikes a balance among Walmart exclusives, private-label offerings and well-known national brands. This move is likely to appeal to both value-driven and brand-conscious consumers.

The timing of this rollout is also noteworthy, as October has increasingly become the unofficial kickoff to holiday shopping, with families spreading purchases over several months to manage budgets and avoid last-minute scrambles. Walmart is leaning into this trend by offering not just deals, but digital support through “Sparky,” its AI-powered shopping assistant that helps users generate gift ideas and compare products quickly. 

Walmart’s value proposition goes beyond this one-week event. With more than 6,000 ongoing rollbacks already live across everyday categories, the retailer is reinforcing its role as a reliable destination for savings all year long. 

Target Corporation TGT is also aggressively leaning into early holiday activity. Its Target Circle Week (Oct. 5 to Oct. 11) promises steep discounts across fashion, home decor, cleaning supplies and more, with thousands of items on sale. TGT is also expanding next-day delivery to 35 major metro areas, aiming to reach more than 50% of U.S. households, and pushing product exclusivity and affordability with many new items priced under $20.

Final Words on WMT

Walmart’s early holiday push with Walmart Deals is more than a week of discounts — it’s a strategic effort to capture consumer spend earlier in the season while deepening engagement with both members and non-members. With sharp pricing, early access perks and fulfillment speed, the Zacks Rank #3 (Hold) is well-placed to shape shopping patterns and sharpen its edge over competitors.

Shares of Walmart have rallied 28% in the past year compared with the industry’s growth of 27.4%.

2 Retail Stocks to Consider

Sally Beauty Holdings, Inc. SBH operates as a specialty retailer and distributor of professional beauty supplies. It currently sports a Zacks Rank of 1 (Strong Buy). SBH delivered a trailing four-quarter average earnings surprise of 8.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Sally Beauty’s current fiscal-year earnings indicates growth of 8.9%, from the year-ago actuals.

The TJX Companies, Inc. TJX, an off-price retailer, currently carries a Zacks Rank #2 (Buy). TJX delivered a trailing four-quarter earnings surprise of 5.4%, on average.

The Zacks Consensus Estimate for The TJX Companies’ current financial-year sales and earnings indicates growth of 5.4% and 7.5%, respectively, from the year-ago reported numbers.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research