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Target shoppers who find better prices online will no longer be able to get Target to match those prices.
Starting Monday, the company is ending its price matching policy.
“What they’re basically doing is saying ‘we’re not going to pay attention to online retailers,’” said retail expert Rich Hollander. “I understand why they’re not, but I think it’s a mistake that they’re not.”
According to a survey by Profitero, across 13,000 items, Target averages 13 percent more expensive than Amazon across thousands of items. In packaged foods in particular, as well as beauty and personal care products, Target averaged 21 percent higher.
The company has been struggling with weak sales, which are currently down 3 percent from last year.
The price matching feature let shoppers get a rebate if they could find the same merchandise they’d purchased from Target for a lower price at one of its competitors, usually Amazon or Walmart.
“They’ve just said ‘we’re going to take care of the customers that walk in the door and that’s terrific,” Hollander said. “They’re not going to let Walmart and Amazon set their prices.”
Some retail analysts say a “race to the bottom” with retailers like Amazon and Walmart was never going to work, even as it weakened profit margins, and was unnecessary because Target serves customers at higher income levels than Walmart or Amazon.
“Are you going to let 5 percent of your customers judge your pricing on everything?” Hollander asked. “Target has said ‘no. I’m going to take care of my customers the way I know how to take care of my customers.’ Now we’re going to have a race and see who wins.”