Target’s 2nd quarter profits increased 3.7%. The business credits the increase to adding fresh food to its stores. Target said sales increased from more consumers consolidating shopping trips at its locations.

In contrast, Wal-Mart has experienced a 9th straight quarter of negative sales. While Wal-Mart has said it is actually seeing sequential monthly improvements, consumers are buying smaller pack sizes of products.

However, not all shoppers are tightening up their budgets. Target is seeing some of its customers trading up to higher end brands which include Smith & Hawken and Fieldcrest.

Across all of retail, the 20% of households with the highest incomes are shopping a lot more often and spending more, while the other 80% have been cutting down on trips and being economical.

Target’s core customer has a median home income of $55,000. Many experts have said Wal-Mart’s core shopper has a household income in the low $40,000s.