Walmart's strong quarterly results, combined with a positive July Retail Sales report, have lifted market sentiment, according to Zacks Equity Research. The company's growing digital presence and success in attracting higher-income households drive its market share gains. Although the retail sector faces challenges, Walmart's resilience and strategic shifts, including AI use, signal a robust outlook. Walmart's strong performance offers some positive indicators for Target, especially in non-essential merchandise. However, Target faces challenges due to its heavier reliance on discretionary spending, which has declined in the post-COVID environment.