Target Ditches Price-Matching Policy for Rivals Amid Sales Slump

Target is dropping its price-matching policy with Walmart and Amazon, citing that customers mostly price match with Target products. The new Price Match Guarantee policy will take effect on July 28, allowing customers to price match within 14 days of purchase, but only for Target products. The decision comes amid slowing sales and competitive pressure.

Retail giant Target is set to discontinue its longstanding price-matching policy with competitors such as Walmart and Amazon, effective July 28, 2025. This shift, announced by the company, will see Target focusing on price matching only within its own stores and website, rather than with external retailers. The new policy will allow customers to request a price adjustment for Target products within 14 days of purchase if they find a lower price within the company's ecosystem [1].

Target's decision to end external price matching comes amidst a challenging financial landscape. The company reported a significant decrease in first-quarter earnings, down from $24.5 billion in the first quarter of 2024 to $23.8 billion in the first quarter of 2025. This decline, attributed to factors including lower consumer confidence, tariff uncertainty, and the backlash to Target's corporate diversity initiatives, has prompted the retailer to reassess its pricing strategy [1].

The new policy aims to simplify Target's operations and improve financial discipline. By focusing on internal price matching, the retailer seeks to enhance its profit margins and reduce the need to compete on price with larger retailers like Amazon and Walmart. This move is part of a broader strategy to emphasize brand value and everyday low prices, as well as Target Circle deals, which offer special discounts and deals to members [2].

The impact of this policy change on Target's stock and long-term strategy remains to be seen. While some investors may view the decision as a step toward financial stability, others might be concerned about potential short-term backlash from customers who rely on external price matching. Retail analysts suggest that the move could help Target control costs and protect earnings, especially during periods of inflation or economic uncertainty [2].

In conclusion, Target's decision to end its price-matching policy with competitors is a strategic move aimed at improving financial performance and simplifying operations. As the new policy takes effect, investors will closely monitor Target's earnings, shopper feedback, and price perception to gauge the impact of this change.

References:
[1] https://abcnews.go.com/GMA/Living/target-end-longtime-price-matching-policy-find/story?id=123935014
[2] https://economictimes.indiatimes.com/news/international/us/target-to-end-12-year-price-match-policy-with-amazon-and-walmart-by-july-28/articleshow/122840442.cms?from=mdr