Target’s price-matching policy has officially come to an end. The retail giant will now only price match on products either sold at Target or on Target.com.
Price-matching policy
The previous policy allowed customers to request a price match if they found an identical item for a lower cost at Walmart, Best Buy, Amazon or Toys ‘R’ Us.
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Shoppers could request a price match within 14 days of purchase if the product was identical in brand name, size, weight, color and model number. That policy had been in place since 2013 but ended as of Monday, July 28.
According to Target’s website, price matches are now exclusively for products purchased within 14 days only at a different Target location or on the Target website.
“We’ve found our guests overwhelmingly price match Target and not other retailers, which reflects the great value and trust in pricing consumers see across our assortment and deals,” a Target spokesperson told ABC News in a statement on Monday, July 21, when the change in the retailer’s price match policy was first announced.
Straight Arrow News spoke with an analyst at Wallethub about the change.
“Back-to-school shopping is ramping up, and consumers are actively looking for deals, particularly in this post-inflationary economy, where there’s so much uncertainty,” Chip Lupo, a writer and analyst at WalletHub, said.
Target sales issues
The change comes after Target took a big hit in sales in the first quarter of the year. The Minnesota-based retailer reported a nearly 4% drop in sales.
CEO Brian Cornell cited the social media boycott of Target over the elimination of diversity, equity and inclusion policies as part of the reason for the sales decline. Cornell said reduced spending on nonessential items and a dip in consumer confidence also contributed to the drop.
“When it comes to, again, what we call seasonal shoppers, people that are in on Black Fridays or back to school, they’re going to the biggest deal,” Lupo said. “And I think the fact that they’re just totally abandoning any type of price matching, I think that’s going to hurt them.”
Target’s next earnings call is scheduled for Wednesday, Aug. 20.
“I think they are going to take a short term hit and I guess they’ll have to do a little bit of soul searching and figure out where they went wrong with this, and maybe revisit these the price matching, or maybe come up with some other way to try to recruit or bring in new customers and retain them or bring back former, former loyal customers,” Lupo said.
Price-matching competitors
Target’s new policy aligns more closely with those of some of its major competitors.
Walmart only price matches purchases from other Walmart stores or on their website, like the new Target plan.
Best Buy will still price match from competitors for a product that is identical to the brand, model, number and color.
Amazon does not offer price matching.
“People are going to go elsewhere,” Lupo said. “They’re going to increasingly turn to online price comparison tools, apps and things, or hit straight with Amazon instead of browsing in Target stores.”
