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Target alters price match policy

Effective July 28, Target will limit price matching to its own stores, dropping Amazon and Walmart.

July 22, 2025 at 02:21 PM

Target is changing one of its biggest customer perks

Target is ending its decade-old price match policy that included competitors like Amazon and Walmart.

Target modifies key customer price matching policy

Target is changing its price match policy that allowed customers to get refunds on price differences with Amazon and Walmart if they found cheaper items within 14 days of purchase. Starting July 28, customers will only be able to request price matches for items purchased at Target's own stores or website. This shift marks a significant change from the policy that began in 2013 and aligns with diminishing practices at competitors, as Amazon does not offer price matching and Walmart ended its policy in 2019. This adjustment follows a challenging quarter for Target, reflecting a 3.8% decline in same-store sales, attributed to concerns over tariffs and customer pushback regarding diversity initiatives.

Key Takeaways

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Target's price match policy will only apply to its own products starting July 28.

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Customers can no longer price match products from Amazon and Walmart.

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The policy change follows a 3.8% drop in comparable store sales for Target.

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Target's stock has seen a 25% decline this year, reflecting investor concerns.

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Customer backlash regarding diversity programs has added to Target's challenges.

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Diversifying suppliers may help Target mitigate costs from potential tariffs.

"We faced several additional headwinds this quarter, including five consecutive months of declining consumer confidence."

Brian Cornell highlights the multiple challenges Target has faced recently, emphasizing decreased consumer trust.

"Cornell warned of massive potential costs from tariffs, but Target could offset these by diversifying suppliers."

This quote underscores the strategic shifts Target may take to manage rising costs.

This adjustment in Target's price match policy reflects broader challenges within the retail sector, especially as companies grapple with evolving consumer expectations and tightening margins. It signals an effort by Target to streamline its operations amid declining sales figures. The change could alienate price-sensitive customers who value competitive pricing against major online retailers. As CEO Brian Cornell points out, external pressures like tariffs and shifts in consumer confidence are critical factors influencing business decisions. How well Target navigates these changes while maintaining customer loyalty remains to be seen.

Highlights

Target is now focusing on price matching only within its own stores.
The decision marks a significant shift in retailer price strategy.
How will customers react to losing price matching with Amazon?
Target's changes reflect broader retail challenges amid declining sales.

Target faces risks from altered pricing policy

The decision to change the price match policy could lead to customer backlash and further decline in sales as shoppers may react negatively to reduced savings opportunities against competitors. The ongoing issues with consumer confidence and diversity programs compound these risks.

As Target navigates these changes, it faces the task of rebuilding consumer trust and loyalty.

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