Target Ditches Price Matching Policy, Simplifies Strategy

Target Corp. is ending its long-standing policy of matching competitor prices, citing that customers primarily compare prices within its own ecosystem. The policy change, set to take effect July 28, will no longer match prices at competing retailers like Walmart or Amazon. The decision comes as Target struggles with sales growth and faces challenges from tariffs and boycotts. The company's new policy more closely resembles Walmart's, which only matches prices between its own stores and website.

Target Corp. is set to end its long-standing policy of matching prices at competing retailers, effective July 28. The Minneapolis-based retailer, known for its competitive pricing strategies, will now align its policy more closely with Walmart Inc., which only matches prices between its own stores and website.

The decision comes amid Target's ongoing struggles with sales growth, as well as challenges posed by tariffs and recent boycotts over diversity initiatives. According to a company spokeswoman, Target has found that customers primarily compare prices within its own ecosystem rather than with other retailers [3].

Target's current policy allows it to match the price of a product sold at Walmart or through Amazon.com Inc., but goods sold via third-party vendors on these platforms are not eligible for matching. The new policy will only match prices within Target's own stores and website, similar to Walmart's approach.

The policy change is part of Target's broader effort to simplify its pricing strategy and improve operational efficiency. The company has been grappling with choppy store traffic, soft demand, and inventory missteps in recent years. Additionally, the company cut its full-year sales forecast in May after missing analyst expectations for its last quarter [3].

Target's stock has been under pressure this year, with the stock down 27% through the first half of 2025, according to data from S&P Global Market Intelligence [2]. The company's fourth-quarter earnings report in March showed comparable sales growth of 1.5% and adjusted earnings per share (EPS) fell from $2.98 to $2.41, but the stock still dropped on the update. The company's first-quarter earnings report in April showed comparable sales dropped 3.8% and adjusted EPS tumbled from $2.03 to $1.30, leading to a cut in EPS guidance for the year to $7.00-$9.00.

In response to these challenges, Target announced a turnaround plan in its first-quarter earnings report, establishing a "multi-year acceleration office" and making several leadership changes to make faster decisions and return the company to long-term profitable growth.

References:
[1] https://www.aol.com/target-shoppers-see-red-over-160132364.html
[2] https://www.fool.com/investing/2025/07/13/why-target-tumbled-27-in-the-first-half-of-2025/
[3] https://www.bloomberg.com/news/articles/2025-07-17/target-to-end-policy-that-matches-prices-of-competitors