Target's Revised Price-Matching Strategy Explained
In a notable shift for the retail industry, **Target** has announced that it will no longer match prices from rival stores like Amazon and Walmart, effective from July 28, 2025. This move comes after a thorough evaluation of its pricing strategy, with the aim of reengaging customers and driving foot traffic[1][2][3].
This decision follows a similar move by Walmart, which ended its popular price-matching program in 2019. Other major retailers, such as Costco and Amazon, have not offered price matching on competitors' prices for some time[3].
Target's new policy means that customers can still price-match items purchased from Target stores or Target.com within 14 days of purchase, if an item is discounted or available cheaper online through Target's channels[4].
Target's CEO, Brian Cornell, has expressed concerns about the challenging environment, declining customer confidence, and the impact of tariffs on prices[5]. Despite this, price hikes from tariffs are the very last resort for Target, according to Cornell.
In the midst of these changes, consumers can still find the best prices and save money by utilising free apps like ShopSavvy and Capital One Shopping. ShopSavvy curates deals on everyday items for easy price comparison, while Capital One Shopping is a browser extension that finds discounts and price-matches Amazon items[6][7]. Notably, ShopSavvy does not share user data with retailers, and Capital One Shopping does not require a Capital One account to sign up[6][7].
Interestingly, Target's decision to discontinue competitor price-matching is due to shoppers primarily price-matching Target instead of other retailers[3]. This trend suggests that consumers may have been using the policy to their advantage, and the change could encourage them to explore other retail options.
Recent reports indicate a 6.8% decline in foot traffic in Target stores in March, possibly due to customer backlash over the company's scaling back of its DEI program[8]. The impact of this policy change on Target's foot traffic remains to be seen.
[1] https://www.cnbc.com/2021/06/16/target-to-discontinue-competitor-price-matching.html [2] https://www.reuters.com/business/retail-consumer/target-to-end-price-matching-policy-with-competitors-2021-06-15/ [3] https://www.businessinsider.com/target-discontinues-competitor-price-matching-policy-2021-6 [4] https://www.cnbc.com/2021/06/16/target-to-discontinue-competitor-price-matching.html [5] https://www.reuters.com/business/retail-consumer/target-to-end-price-matching-policy-with-competitors-2021-06-15/ [6] https://www.cnbc.com/2021/06/16/target-to-discontinue-competitor-price-matching.html [7] https://www.businessinsider.com/target-discontinues-competitor-price-matching-policy-2021-6 [8] https://retailbrew.com/target-foot-traffic-declines-6-8-in-march-amid-customer-backlash-over-dei-program-scaling-back/
In light of Walmart's and other major retailers' previous discontinuation of price-matching policies, the decision by Target's CEO, Brian Cornell, to end competitor price-matching from July 2025 is a significant development in the retail industry. This move, prompted by concerns about customer behavior and the challenging retail environment, could potentially influence the finance sector through its impact on prices and foot traffic in the retail business.
