I buy groceries and home decor all the time.
Advantages of Target:
-5% off everything and free shipping online with your RedCard.
-Hundreds of coupons available on http://coupons.target.com/ . These coupons stack with manufacturer coupons, which also stack on top of sales, gift card offers, or even clearance.
-Their clearance outside of videogames is spectacular. I've scored so many wonderful things for my new house these past few months. Lamps, mirrors, knobs and so much more. Good looking stuff too.
-It's a clean, well organized store. I'll gladly pay a few more cents per item more for the atmosphere and to avoid "Walmart people". I'm sorry, it may sound snotty but there's a reason why there's a peopleofwalmart.com. The South Park episode where they depicted people in rascal scooters at Walmart was super accurate.
-A shower curtain may be $1-$2 more at Target versus Walmart, but you get what you pay for. You pay just a little extra to get much nicer things.
-This sort of relates to product selection. Often times at Walmart I see the trashy looking clothes there and think "people buy this?". Rarely does that thought cross my mind at Target.
Yes, if you compare items side by side without any offers, Target will often lose out. However, I feel I can have "nice" things at a reasonable price, whereas other places offer me "cheap" looking things at a cheap price. And with their stackable coupons and clearance, Target has a good reputation among extreme coupon-ers.
In comparison to some game retailers, they suck though, and that's too bad. Every so often though they have a surprising gift card offer, temporary price cut, clearance game, or crazy offers like the trade-in special thing several months back.
edit: upon examination of my comment, I was very fixated on Walmart, whereas the comment I quoted used Costco as an example. I'm sure Costco is better then Walmart, but the general ideas of why I like Target still stands.
I agree with everything you said. I haven't been to Wal-Mart in over 5 years and I don't plan to change that soon.
Costco is the only place I buy clothes and food. They have a markup policy, they can only mark up items 20% (IIRC). So you will see items super cheap in bulk. Clothes are super cheap too. Kirkland Jeans for $14. Khaki pants for $20. The downside to the markup policy is some items are loss leaders at other places and can be cheaper, but it's only 1% of the time.
I mostly get house items that Costco doesn't carry, but every else is target. Especially if I can get it on coupon.