Retail rivalry: Homes near Target worth almost double of those near Walmart

I really dont have a problem w/WalMart. I know that many memebers here on ATS will not enter a Wal Mart, and I understand. I have always prefered Target over WM, just because the 'shopper' and 'checker' seem to be a different breed. Targets always seem cleaner, brighter and the ilse wider.

I never really see the WalMartians at "Target", could this may be why. What say you ATS!?

RealtyTrac looked at homeowners who sold in 2015. Those near a Target saw an average 27 percent increase in home price since they purchased their home. That's an average price gain of $65,569.

As for homeowners near a Walmart, the numbers were bleak in comparison. They saw, on average, a 16 percent appreciation and price gain of $24,900. Property appreciation in zip codes nationwide averaged 22 percent, while the average price gain is $40,626.

The value of homes near a Target also average significantly higher than the value of a home near Walmart: $307,286 compared to $178,249 respectively.Home prices nationwide averaged $215,921 across all zip codes.

L I N K

a reply to: ReadLeader

I imagine that's because Target stores fit in more suburban communities and WalMart would rather build at huge intersections in the corner of towns to drive the most traffic into their doors.

Maybe? Less to do with the fact that it's a Target, more to do with the fact that they set up shop in a better part of town.

~Tenth

I have a Target right next to a Walmart. What does that do to my property value???

originally posted by: tothetenthpower
a reply to: ReadLeader

I imagine that's because Target stores fit in more suburban communities and WalMart would rather build at huge intersections in the corner of towns to drive the most traffic into their doors.

Maybe? Less to do with the fact that it's a Target, more to do with the fact that they set up shop in a better part of town.

~Tenth

Correct.

Target is more upscale than Wal-Mart. Wal-Marts retail location strategy has always been to setup in "exurbs" or far out communities. These communities generally don't see huge price appreciation gains in home value as they are not normally high demand areas. Targets tend to be in suburbs closer in to civilization and may generally see stronger housing markets as the communities are more desirable.

Correlation does not mean causation. While there is a correlation with Targets being located in higher value areas, target itself is not necessarily making those areas higher value. On the flip side, Wal-Mart is not why a community would have less home value.

a reply to: Edumakated

It's just something I noticed, all the Walmarts in our area are on the outskirts of town, or major intersections in town.

Our target ( well closed now) was tucked away in a relatively new subdivision's strip mall, and those houses were all newly build, 200K plus, while the only real housing projects near walmart were low income and a few trailer parks.

~Tenth

The question is: Are the homes worth what they are BECAUSE of the nearby retailer, or do the retailers tend to pick areas where the homes have a given price? Target tends to pick places adjacent to malls. Wal-Mart tends to pick more isolated places, frequently with no other retail around them. In my area there are two Wal-Marts and one Target. I can't imagine the real estate prices around them are much different as everything around here is expensive. They may be catering to different demographic classes, but not by much. I don't like to go in either one of them. That popcorn smell in target is nauseating.

originally posted by: schuyler
The question is: Are the homes worth what they are BECAUSE of the nearby retailer, or do the retailers tend to pick areas where the homes have a given price? Target tends to pick places adjacent to malls. Wal-Mart tends to pick more isolated places, frequently with no other retail around them. In my area there are two Wal-Marts and one Target. I can't imagine the real estate prices around them are much different as everything around here is expensive. They may be catering to different demographic classes, but not by much. I don't like to go in either one of them. That popcorn smell in target is nauseating.

It is kind of chicken or egg first. In the early days, Wal-Marts used to be out in the middle of nowhere. Vacant land off highways with absolutely nothing around then. Generally, once the Wal-Mart came to town, development would build up around it. Adjacent strip malls, gas stations, etc. From Wal-Marts perspective, the land was cheap and people are willing to drive to save some money.

They still tend to follow the same strategy, but now Wal-Marts have moved to closer in and more established communities. Wal-Mart isn't necessarily the nucleus anymore.

Target on the other hand has generally located in existing strip malls and other more populated areas. The stores usually aren't as big, etc. While having these retailers nearby can certainly help home values, I don't think they are a major driver individually. It is the collection of retailers that people desire - all the other stores and restaurants.

While there is marginal difference between Target and Wal-Mart, their retail location strategies were different.

I work in real estate and always find it interesting to see what communities become desirable and why.

a reply to: ReadLeader

What is up with Walmart being so damn dark? Some days I go in there and I can barely see things..especially if it's a cloudy day. Turn on some lights! I hate Walmart..but I get a few things there that target doesn't carry. I also agree..Target is cleaner and more cheery..Walmart seems grungy and dirty..I have not ONCE seen a 500 lb woman in a wheelchair in Target..wearing her 1/2 shirt as fat rolls off to the sides..I see it at Walmart though...My kids hate going into walmart too.

a reply to: ReadLeader

Everything you say is your opinion, prejudice and preference. I won't call you racist.

It is no secret that Target targets the upper income people and those who want to be seen as upper income. Walmart aims to please everyone with lower prices. When you enter Walmart you see a broader section of the population. In Target you see the ones that segregate themselves from the rest.

For my money, Walmart. They always have a decent selection of exact products at lower prices.

The media tends to favor Target over Walmart. You decide.

originally posted by: Generation9
a reply to: ReadLeader

Everything you say is your opinion, prejudice and preference. I won't call you racist.

Nonsense. He quoted a study that came to those conclusions. Why would you attack OP personally? Deal with the issue.

It is no secret that Target targets the upper income people and those who want to be seen as upper income. Walmart aims to please everyone with lower prices. When you enter Walmart you see a broader section of the population. In Target you see the ones that segregate themselves from the rest.

Another bit of nonsense. Target is hardly an "upper income" retailer. It's more like K-Mart. Along with Wal-Mart all three cater to the modest incomes. If Target is a cut above, it's a very small cut. They are called "discount retailers" for a reason. You find the same Chinese junk in all three. These are not Nordstrom's shoppers. Target is the second biggest retailer behind Wal-Mart.

Of course, you could pronounce Target with a French accent and pretend it's a boutique.

Well. Target sell better crap. It's still mass-produced, made in China crap -- but better crap. More expensive crap.

It's all about perception.

That place sells expensive things, therefore people living near it must have more money.

EDIT: And Target markets and tries to maintain an image of being a "cut above" Walmart. You don't see "People of Target" jokes/websites. They also keep their stores cleaner and carry higher-end clothing from bigger designers than Walmart does. Going into a Target has a whole different feel than a Walmart. Even if it's all the same crap with a 1-2$ price increase, you feel like you're stepping up just a bit.

originally posted by: MystikMushroom
Well. Target sell better crap. It's still mass-produced, made in China crap -- but better crap. More expensive crap. That place sells expensive things, therefore people living near it must have more money.

They're a "discount retailer." They sell cheap things. Commodities. You get the same shampoo, the same cat litter, the same razor blades, the same mass market paperbacks in each store. To claim that Target caters to "high income" is just laughable.

a reply to: schuyler

They do. They might charge more, and when people pay more they somehow think it means it's "higher end". It's all perception.

It's psychological.

In any case, if the same shampoo is cheaper at Walmart, the low income people are going to shop there. Low income people won't want to spend more at Target. If you go into a Target you don't see the same types of .... people you do at Walmart.

Target aims their marketing and pricing at the middle class. Not the low middle class, the middle to upper middle class. They design their ads, flyers, sales, even the color schemes of their stores to play upon the psychology of the middle class.

The atmosphere and people that shop there make the experience much more pleasant, usually worth the extra few dollars.

When I go to Wal Mart, there are people that look like crackheads walking around screaming at their kids, etc.

I look at the websites of both Target and Walmart. For Women's clothing, Target seems to sell up-market clothing for work and leisure. Walmart concentrates on sleepware and maternity wear.

I look at bedding with things like quilt sets. Walmart has these cool categories for geometric, floral, stripes and medallion, which is way better than our local stores. Target organises everything by bed size and bedroom size along with some basic color ranges. What is a California king bedding size?

I get the impression Walmart is for the young single person or family, while Target is for more up-market conservative family.

a reply to: ReadLeader

Well, we have two Walmart and one Target near the nice end of town, and one Walmart in the not so special end of town, although many of the wealthier home owners risk coming near the north end crap people, from outside city limits to go to Walmart.

Which is located by BIG R and, that other one.

They kinda didn't want to put it into the heart of the north end so sorta situated it a little on the outskirts in-between the filth and the beautiful people.

Proud North ender.

PS. we were so happy to get a Walmart, they stuck everything out in the lovely neighborhoods where the money was for years, our Walmart parking lot is always full and our money green.

And churches too, all the lovely old inner city churches are becoming mega churches with giant crosses in the good end of town where the good reside,

youtu.be...

originally posted by: RedDragon
The atmosphere and people that shop there make the experience much more pleasant, usually worth the extra few dollars.

When I go to Wal Mart, there are people that look like crackheads walking around screaming at their kids, etc.

Funny that, You see I clean houses for the beautiful pleasant people, they drink more and come into our neighborhoods to buy their crack.

originally posted by: Vroomfondel
I have a Target right next to a Walmart. What does that do to my property value???

a reply to: ReadLeader

Well, that's interesting!

Where we live at the moment, we have one of each, and I can tell you without even checking that's the case here. The Walmart area is the one with lower cost homes, lower income people, and in general, more problems. My guess; Target is careful where they build. I avoid Walmart myself, mostly, though we do get a few things there. Cheaper kid clothes, some odds and ends, but that's about it. Mainly, the way Walmart does business bugs me. I don't like how they try and push only certain brands, and how they try and force manufacturers to ONLY do business with them. I know they do that. My brother-in-aw works with computers, for a company that makes industrial AC units, and also smaller ones for homes, like window types. Most of their business is the industrial type. Walmart wanted to carry their window units, and they said sure, no problem. Until, that is, Walmart said they'd only carry them if the company ONLY sold at Walmart. As in, give up all the commercial stuff. The company laughed and walked away. As an example for stuff they sell, I used to get DVDs there. Used to. Then they cleared out all but ONE brand, stocked it in the same space they'd previously had 5-6, and stopped selling the rest. The ones they kept were the worst, most unreliable, of the lot. Now we get them at Target. DVD cases, to hold movies for which the cases have been damaged over time? Walmart charges the same for a crappy cheap case that Target does for a nice one. So, stuff the kids will outgrow in two months, I'll save a little and buy at Walmart. Mostly, we skip them.

That they have half the aisles blocked half the time, and can't stock or manage better, doesn't help, either. The all-night grocery place never does that! Walmart used to be better.

originally posted by: schuyler
The question is: Are the homes worth what they are BECAUSE of the nearby retailer, or do the retailers tend to pick areas where the homes have a given price? Target tends to pick places adjacent to malls. Wal-Mart tends to pick more isolated places, frequently with no other retail around them. In my area there are two Wal-Marts and one Target. I can't imagine the real estate prices around them are much different as everything around here is expensive. They may be catering to different demographic classes, but not by much. I don't like to go in either one of them. That popcorn smell in target is nauseating.

It's not that way here, and we only have one of each. The Walmart is very close to the mall, and a lot of other businesses. The Target is close to other businesses, being in one strip center with another adjoining, but it's nowhere near the mall. Both are along a major road through town.

I do suspect the Targets try and get better areas, though.