Target Discontinues Price-Matching Policy, Sets New Guidelines

Target Corp. will discontinue its price-matching policy on July 28, only matching prices on its own website or in-store. Analysts forecast an average target price of $104.64, with a high estimate of $140 and a low of $80. The average target implies a 2.59% downside from the current price of $107.43. The company's GAAP EPS was $2.27 in Q1, and full-year adjusted EPS guidance was updated to $7 to $9.

Target Corporation (TGT) has announced a significant change to its price-matching policy, effective July 28, 2025. The retailer will no longer match prices found at Amazon or Walmart, limiting the policy to Target's own stores and website. This shift comes amidst a challenging quarter for the company, with sales declining 3.8% compared to the same period last year [1].

Under the new policy, customers will be able to request a refund for the difference in price if they find an identical item cheaper at Target within 14 days of purchase. This change aims to reposition Target amid slowing sales and competitive pressure, with the company stating that customers "overwhelmingly price match Target and not other retailers" [2].

Target's price-matching policy began in 2009 and expanded to include online retailers like Amazon and Walmart in 2013. The decision to discontinue matching prices at these competitors is driven by the company's efforts to reduce costs and improve profitability. The change comes as Target seeks to navigate tariff-related uncertainty, declining consumer confidence, and backlash over its rollback of diversity, equity, and inclusion (DEI) programs [1].

Analysts forecast an average target price of $104.64 for Target, with a high estimate of $140 and a low of $80. This implies an average downside of 2.59% from the current price of $107.43. The company's GAAP EPS was $2.27 in Q1, and full-year adjusted EPS guidance was updated to $7 to $9, reflecting the impact of tariffs [3].

The new policy is part of Target's broader strategy to operate more nimbly and adapt to changing market conditions. The company aims to create conditions for speed, adaptability, innovation, and resilience through its Enterprise Acceleration Office initiative [2].

References:
[1] https://www.cnn.com/2025/07/22/business/target-price-check-ending
[2] https://www.foxbusiness.com/lifestyle/target-drops-popular-perk-shoppers
[3] https://investors.3m.com/news-events/press-releases/detail/1897/3m-reports-second-quarter-2025-results-increases-full-year