The front entrance of a Target store in Newark, Calif., is shown Nov. 20, 2007. Target Corp. is under pressure after losing market share and customers to Wal-Mart, which credits its profits and sales growth to necessities like groceries and its powerful low-cost message.

New York ? Target Corp. is going bananas to keep up with Wal-Mart Stores Inc.

The discounter, known for stylish towels and jeans, has long sold groceries. But it is barely holding onto its customers while its chief rival, Wal-Mart, is rapidly picking up new shoppers as its powerful low-cost message resonates in the recession. So Minneapolis-based Target plans to stock more fresh food — including bananas — and play up its low prices.

Meanwhile, Wal-Mart, the world’s largest retailer, is expanding its selection of nonessentials like home furnishings, while improving quality of its store-brand food.

Activist shareholder William Ackman has for several months been using Target’s struggle with Wal-Mart as ammunition to push Target shareholders to change its board at their meeting, to be held Thursday at an unfinished store in Waukesha, Wis. Ackman has said his five picks, including himself, would provide fresh perspective, increase profitability and re-energize the stock, which has dropped 42 percent from its high of $70 in July 2007, though it has rallied since March.

Tim Jasinski, 51 — who was filling his basket with pasta, red wine, cream sauce and a can of mushrooms at a Wal-Mart store in Waukesha last weekend — says he rarely goes to Target anymore.

“Sure, they have some better things,” Jasinski said of Target. “But money is more important.”

About 37 percent of Target’s revenue comes from necessities like paper towels and food. For Wal-Mart, that figure is about 60 percent.

Facing criticism from Wall Street analysts who believe it’s been late to respond to the recession, Target — which is about one-sixth the size of Wal-Mart — is becoming more vulnerable. But New York-based retail consultant Walter Loeb is not convinced that Ackman should get involved.

Loeb said Target has “plenty of opportunities to get better,” particularly in groceries, and is making the right moves.