Target Discontinues Competitor Price Matching Policy

Target Corporation is revising its long-standing pricing strategy, announcing a significant shift away from matching competitor prices. This strategic pivot, effective July 28, reflects the retail giant’s efforts to navigate intense competitive pressures and address recent performance challenges, signaling a fundamental reassessment of its market positioning.

• Target will cease matching competitor prices, effective July 28, 2024.
• The updated policy limits price matching to Target’s own products, in-store or online, within 14 days of purchase.
• This change marks a significant departure from the company’s decade-long “Low Price Promise” strategy.
• The strategic adjustment comes amid a challenging retail environment and recent missed financial forecasts.
• CEO Brian Cornell is implementing broader initiatives, including the Enterprise Acceleration Office, to revitalize growth.

Revised Price Match Guarantee

Under the revised Price Match Guarantee policy, customers will now exclusively be able to price match other Target products, whether purchased in-store or online, within 14 days of purchase. The company has explicitly discontinued its practice of matching prices from rival retailers. Target stated that this decision was primarily driven by internal data indicating that “guests overwhelmingly price match Target and not other retailers,” suggesting a strategic focus on internal consistency rather than external competitive alignment.

A Decade of Price Matching: Historical Context

This policy change marks a notable departure from Target’s decade-long approach to pricing. The company first introduced its “Low Price Promise” in 2009, initially matching prices from other brick-and-mortar stores. By 2013, this policy had expanded to include year-round price matching against major online retailers such as Amazon.com and Walmart.com. Gregg Steinhafel, then CEO, had characterized this aggressive price matching as a key factor in establishing Target as an “unbeatable value” in a highly competitive retail landscape.

Navigating a Challenging Retail Landscape

This strategic adjustment unfolds as CEO Brian Cornell endeavors to revitalize the company amidst a “highly challenging” retail environment. Target recently missed Wall Street expectations and subsequently lowered its financial guidance for the fiscal year during its May earnings call. The company has cited factors such as tariff uncertainty and declining consumer confidence as significant contributors to its recent sales slump and persistent difficulty in returning to consistent growth.

Strategic Initiatives and Revised Projections

In response to these pervasive headwinds, Target has launched a multi-year growth initiative known as the Enterprise Acceleration Office, spearheaded by Chief Operating Officer Michael Fiddelke. This initiative is designed to enhance the company’s operational agility, fostering “speed, adaptability, innovation and resilience.” For fiscal 2025, Target now projects a low-single digit decline in sales, a revision downward from its earlier forecast of approximately 1% net sales growth. This updated projection underscores the critical urgency of these strategic internal adjustments.