Walmart’s 28% E-Commerce Growth and 7,400 Rollbacks Intensify Competition for Target
Walmart’s U.S. comparable sales rose 4.5% and e-commerce sales jumped 28% in Q3 FY26, with 7,400 rollbacks (2,000 made permanent) to widen price gaps and gain share in grocery, intensifying competition for Target. U.S. equity and bond markets are closed for Presidents Day, while Target stores remain open.
1. Walmart Price Leadership
Walmart U.S. drove a 4.5% comparable sales increase in Q3 FY26 via price leadership, executing 7,400 active rollbacks—over half in grocery—and converting 2,000 temporary reductions into permanent everyday low-price cuts to widen price gaps against competitors like Target.
2. Digital Expansion and Inventory Discipline
Global e-commerce sales climbed 27% in Q3, with U.S. segment up 28%, marking the seventh consecutive quarter above 20% growth. Inventory inched up 3.2% to $65.4 billion, roughly half the pace of sales growth, underpinning operational efficiency amid rising demand.
3. Presidents Day Holiday Impact
Equity and bond markets halted trading on Feb. 16 for Presidents Day while major retailers, including Target, remained open. This temporary market closure offers retailers a chance to capitalize on holiday consumer traffic without stock market volatility.