I'm going to start out by going ahead and telling you that I am not a fan of Wal-Mart. I get most of my groceries there because they are about 5 miles closer than the next nearest grocery store (who I do still go to on occasion for their excellent meat deals) and their name brand diaper prices are ususally the best around. Other than that, I'd rather go elsewhere.
So Wal-Mart has done a pretty good job of getting every penny they can out of lower and middle class America. They're now setting their sites on upscale shoppers by offering fancy wine, high end electronics, and a sushi bar among other things at a test site out in Plano, TX (which has become quite the upscale area in Dallas from what I hear).
This plan really shows to me that Wal-Mart has absolutely no idea why the upscale shopper goes to Target instead. Sure Target has some decent name designer clothing but they don't have much along the lines of high-end electronics and they sure don't have a sushi bar. What do they have then? Target has a better shopping experience. Target is often less crowded and is more accessible with a shopping cart. Most importantly though, people can actaully get through the checkout line at Target in a reasonable fashion. This is partially due to Target's policy of opening a new checkout lane whenever more than three people are waiting in line. I can't count the number of times I've been into Wal-Mart when there is the one regular lane open and the four self checkout stations full of customers who have absolutely no idea how to do self checkout. I've also noticed that Target's cashiers are much more likely to fetch a supervisor for help when they encounter something they cannot immedeately handle (like incorrect price ringing up) but that may be anecdotal evidence on my part and not actually company policy.
This brings me to perhaps the biggest reason Target has the upscale shoppper advantage right now. Target doesn't have the riff raff. Wal-Mart won the retail battle for lower and middle class America and quite frankly the upscale shopper doesn't want to shop in the same building. They don't want to be stuck behind the lady using 30 paper food vouchers to purchase her groceries and they don't want to shop around the people who are there to hang out on a Friday night. If Wal-Mart is serious about gaining the upscale shopper audience, then they need to open a Wal-Mart and then open a Tram-Law right next store (or better yet across the street) that is everything Wal-Mart is not: a clean well-oiled machine of a store. They're simply not going to get the low-end and high-end shoppers together under one roof. Stores like American Fare and Hypermart have tried that before. They're no longer in business.