Target to end price-matching of Amazon, Walmart. What to know.

USA Today

2 days ago

Target is ending its guarantee to price-match Amazon and Walmart on July 28.
A spokesperson for the retailer confirmed the policy change to USA TODAY. Beginning July 28, Target will only match its own in-store and online prices at Target.com, if the price drops within 14 days, the spokesperson said.
"We've found our guests overwhelmingly price match Target and not other retailers, which reflects the great value and trust in pricing consumers see across our assortment and deals," Target said in a statement released to USA TODAY. "Starting July 28, we'll update our Price Match Guarantee policy to reflect this, allowing consumers to continue to shop with confidence at Target stores and Target.com."
​What is happening to Target's price-match policy?
Target's current price-match policy says "We'll match the price if you buy a qualifying item at Target and then find the identical item for less at Target.com, Amazon, Walmart or with a Target Circle™ deal (deals that apply automatically upon identifying yourself as a Target Circle member). Price matches may be requested at time of purchase or within 14 days after purchase."
"Target's Price Match Guarantee, paired with our commitment to being priced right daily, ensures guests get great prices when shopping Target.," the statement from the retailer said.
Eliminating the price match for Walmart and Amazon items, "generally speaking puts us in line with what the rest of the industry already does," a spokesperson for Target told USA TODAY.
Neither Amazon nor Walmart currently match competitors' prices. Walmart ended the practice in 2019.
Walmart's policy says it will match the price of the identical item advertised on Walmart.com for purchases in a Walmart store and the store manager has the final decision. Walmart does not price match items purchased from its website or products sold by competitors. It also won't match the price of an item previously purchased on Walmart.com that now costs less. Additionally, Walmart doesn't price-match items available through Marketplace on Walmart.com or third-party sellers or items in its Neighborhood markets.
On its website, Amazon says of its price-matching policy: "we constantly evaluate Amazon's prices to offer customers low, competitive prices every day. As a result, we don't offer price matching."
There are still retailers who have a price-match guarantee. Best Buy's policy will match the price of a new identical product. It must be a matching brand, model number and color.
End of price matching at Target is bad news for consumers
Ending the competitor price match at Target is "a deterioration in customer service,'' said Neil Saunders, a retail analyst at the research and analytics firm GlobalData. "But to be fair to Target, it is simply bringing it into line with most other retailers. There is a sense that perhaps Target was being too generous with its price matching policy."
"Price matching is more important on big-ticket items, such as appliances and electronics, as these goods are expensive, and shoppers are very active in making price comparisons," he said. "It is also easy to compare items as they are usually brands and carry specific model numbers, which are easy to research online."
End of Target price match policy is financial, analyst says
While Target's policy change brings it in line with other retailers, the move also helps simplify processes and protect profits, said Saunders.
"Target's profitability and margins have weakened over recent years, and if it wants to invest more in stores, then it needs to be more financially disciplined," Saunders told USA TODAY. "Ending price matching helps to achieve this, especially at a time when costs are rising because of tariffs. That said, this is only one part of the puzzle and there is a lot more Target needs to do to bolster its bottom line."
Consumer boycotts: Target donated $300,000 to a Black church group. Why boycott activists want it returned.
Retailer has been target of consumer boycotts
Target has also been struggling, along with other retailers, this year, from slumping sales as shoppers face economic uncertainty, including worries about rising prices due to tariffs. Target slashed its annual forecast during its last earnings report on May 21, reporting a sharp fall in quarterly same-store sales as customers pulled back on purchases because of worries about inflation and the economy. Target also acknowledged that its performance was affected by consumer boycotts.
There have been several boycotts by consumers angry that the retailer has retreated from its diversity, equity and inclusion efforts. Two separate actions initiated by members of the Black community continue to encourage people to not to shop at the retailer temporarily or permanently.
When asked if financial struggles, including tariffs and consumer boycotts, affected Target's decision to end its price-matching policy, a Target spokesperson said the policy was changing due to shoppers mostly price-matching Target products and not competitors.
Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at [e-mail] or follow her on X, Facebook or Instagram @blinfisher and @blinfisher.bsky.social on Bluesky. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays, here.