As consumers scale back on spending in the face of a softening U.S. economy, at least one analyst suspects that more shoppers are choosing Wal-Mart Stores Inc. over rival Target Corp.Sagging home prices, higher gas prices and job cuts have Americans paying close attention to how they spend their money. Investors are taking note — since late November, shares of Wal-Mart have soared, outperforming Target by double digits. Target shares are testing year-plus lows, while Wal-Mart touched a nearly three-year high earlier this month.
Despite weak consumer spending, Bentonville, Ark.-based Wal-Mart last week posted a 4 percent higher fourth-quarter profit, helped by a renewed focus on low prices and big holiday discounts.
Wal-Mart, the world's largest retailer, has benefited from its grocery business and home electronics offerings, which include flat-screen televisions and computers.
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