Target and Wal-Mart continue to clash as Walmart tries to improve its image and move closer to Target’s "cheap chic" approach. A recent study by Retail Forward says that Target can gain more ground by expanding fresh foods area.

So far, the group claims Targets hasn’t mastered the art of drawing shoppers with food options. For now, the lack of groceries is the leading reason why Target loses to Wal-Mart as a weekly destination. If Target more fully embraces groceries, consumers will see the same “cheap chic” approach applied to areas like the meat case. 

Wal-Mart, on the other hand, saw its profits in the first quarter fall by a third to $2.08 billion from $2.81 billion a year ago. This is the first decline in a decade for the discount retailer. The drop is due to an exit from the German market, along with higher transportation costs and lower margins in food.