Santa Claus is coming to town – but at what cost to Walmart and Target?


Pent-up demand is expected to have boosted early holiday sales this year, but big discounters Walmart (WMT) and Target (TGT) may still see margins fall as surging costs for labor, warehousing and ocean and land freight threaten to play Grinch.

“Everybody’s facing higher expenses but Walmart also has a much more efficient supply chain - they should have a very good holiday season, even with all the cost pressure,” Telsey Group analyst Joe Feldman said.

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