Target eliminates price match policy, risking customer trust

In the United States, Target Corporation has announced it will discontinue its price match guarantee effective July 28, 2025. The policy, which has been part of the company’s value proposition since 2013, allowed customers to receive a refund for the difference if they found a lower price for an identical product sold by Amazon or Walmart within a 14-day window after purchase. This decision follows Target's recent struggles in maintaining competitive pricing against other retailers and has emerged amidst a decline in sales, with a noted decrease of nearly 1% in fiscal 2024 compared to 2023. The elimination of the price match policy is seen as a response to the company's performance metrics, which indicated that the price match guarantee was not providing sufficient consumer engagement or competitive advantage necessary to justify its costs. Critics argue that this change will further erode customer trust—a crucial element in encouraging shopper loyalty. According to Professor Emeritus Charlie Skuba, Target's historical approach to price matching was perceived as a value benefit for customers. Still, it appears that the store's data recognized more challenges than advantages in sustaining this policy. Target's leadership expressed concerns over the effectiveness of the guarantee, suggesting that customers were not utilizing it as frequently as anticipated. This shift may signal a broader industry trend, as not many other retailers maintain competitive price-match policies, which could align Target's practices more closely with market standards. Experts predict that this decision will amplify the need for Target to enhance its pricing strategy if it aims to uphold a reputation of value amid intense competition from rivals like Walmart and Amazon. As Target repositions itself following these changes, it faces a significant risk of alienating customers who are accustomed to a more customer-friendly pricing model. The timing of this announcement raises concerns about the chain’s awareness of current retail sentiment where consumers prioritize trust, value, and competitive pricing. If Target fails to adapt effectively to these customer expectations, it could lead to decreased loyalty and longer-term sales declines, pushing shoppers towards competitors who maintain more robust price guarantees and perceived value.