New York (CNN Business) The winners and losers of America's great retail shakeout are becoming clear. Target and Walmart are definitely winners. Just about every traditional department store is losing.

Target TGT Sales at Target stores open at least a year increased 3.4% during the summer quarter and profit rose, Target said Wednesday.beat Wall Street's predictions for the recent quarter and raised its profit forecast for the rest of the year.

The results come on the heels of Target's best year in more than a decade . Investors drove up Target stock around 18% in early trading Wednesday. Shares hit a record high.

Target said clothing sales increased more 5% last quarter and that it is gaining market share in the category. Those are clear signs that Target's growth is coming at the expense of apparel retailers. Target has introduced new clothing brands for men, women and kids in recent years and displayed them more prominently in stores.

"There are clear winners and unfortunately losers in retail today," Target CEO Brian Cornell said on a call with reporters Wednesday. "We're obviously taking share from other retailers that have been closing stores or haven't had the ability to invest in the needs of today's consumer."

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