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Target is abandoning one of its biggest customer perks | CNN Business

Target to End Long-Standing Price Matching Policy Amid Shifting Retail Landscape

In a significant shift for one of America's largest retailers, Target Corporation has announced it will discontinue its price matching program effective later this year. The decision, revealed in a company statement on July 22, 2025, marks the end of a policy that has been a staple for budget-conscious shoppers since its introduction over a decade ago. This move comes as retailers grapple with evolving consumer behaviors, intensified online competition, and economic pressures that are reshaping the brick-and-mortar shopping experience.

Target's price matching policy, often referred to as "Price Check" or "Price Match Guarantee," allowed customers to request a price adjustment if they found the same item at a lower price from select competitors, including Amazon, Walmart, and other major chains. Shoppers could present proof of the lower price either in-store or online, and Target would match it on the spot or within a certain timeframe after purchase. This initiative was designed to build customer loyalty by ensuring that Target remained competitive without forcing shoppers to hunt for deals elsewhere. Over the years, it has been particularly popular during high-traffic shopping seasons like Black Friday, back-to-school sales, and the holiday rush, where price sensitivity runs high.

The retailer cited several factors for phasing out the program. According to Target's official release, the decision stems from a strategic review aimed at streamlining operations and focusing on core strengths such as exclusive product lines, in-store experiences, and digital integration. "As we continue to evolve our business to meet the needs of today's consumers, we're making thoughtful changes to simplify our offerings and invest in areas that matter most to our guests," the statement read. Insiders suggest that the policy has become increasingly burdensome in an era dominated by e-commerce giants. With tools like price-tracking apps and real-time online comparisons, maintaining a manual price-matching system has proven costly and logistically challenging for Target's workforce.

Retail analysts point to broader industry trends as the driving force behind this change. The rise of platforms like Amazon, which offer dynamic pricing algorithms that fluctuate by the minute, has made traditional price matching obsolete for many physical stores. "Price matching was a defensive strategy from the pre-Amazon days," says Sarah Thompson, a retail expert at the Consumer Insights Institute. "Now, with consumers able to check prices on their phones while standing in the aisle, retailers like Target are realizing that the policy doesn't drive enough incremental sales to justify the operational overhead." Thompson notes that similar policies have been scaled back or eliminated by other chains in recent years, including Best Buy and Walmart, which have either limited the competitors they match or imposed stricter verification processes.

For Target, the economics of price matching have likely tipped against it. Each match requires employee time to verify claims, process adjustments, and sometimes even handle disputes, which can lead to longer checkout lines and frustrated customers. In a post-pandemic world where labor costs have surged and staffing shortages persist, these inefficiencies add up. Moreover, data from retail analytics firm MarketWatch indicates that only a small percentage of shoppers—estimated at around 5-10%—actually utilize price matching, yet it accounts for a disproportionate amount of administrative work. By ending the program, Target aims to redirect resources toward initiatives that could yield higher returns, such as enhancing its Target Circle loyalty program, expanding same-day delivery options, and bolstering its private-label brands like Good & Gather and Cat & Jack.

Consumer reactions to the announcement have been mixed, reflecting the diverse priorities of Target's customer base. On social media platforms like Twitter and Reddit, some shoppers expressed disappointment, arguing that the policy was a key reason they chose Target over competitors. "This is a huge loss for families on a budget," tweeted one user from Minneapolis, Target's hometown. "Price matching kept things fair—now I'll just shop wherever it's cheapest online." Others, however, see it as a non-issue, pointing out that Target's everyday low prices and frequent promotions already provide value. "I never used it anyway," commented a user on Target's app feedback section. "Their sales are good enough."

The decision also raises questions about how it will affect Target's competitive positioning. Walmart, for instance, still offers a limited price match in some markets, though it's not as comprehensive as it once was. Amazon, with its vast ecosystem, doesn't need to match prices because it often sets them. Smaller retailers and regional chains might view Target's move as an opportunity to attract deal-hunters by doubling down on their own matching guarantees. "This could create a ripple effect," explains retail consultant Mark Reynolds. "If Target steps back, others might follow suit, leading to a landscape where consumers rely more on apps and less on store policies for savings."

Historically, price matching emerged in the 1990s as a response to the growth of big-box stores and the need to combat showrooming—the practice where customers browse in physical stores but buy online for cheaper. Target adopted its version in 2012, expanding it during the 2010s to include online competitors in a bid to counter Amazon's dominance. The policy was tweaked multiple times, such as excluding certain items like clearance merchandise or third-party sellers, to prevent abuse. Despite these safeguards, instances of fraudulent claims—where shoppers presented doctored screenshots or outdated ads—have been a persistent headache, further eroding the program's viability.

Looking ahead, Target's pivot away from price matching aligns with its broader transformation into a more omnichannel retailer. The company has invested heavily in its app and website, integrating features like personalized deals and inventory checks that allow customers to compare prices digitally without needing in-store assistance. Additionally, Target's partnership with services like Shipt for delivery and its expansion of drive-up pickup options emphasize convenience over price wars. "We're focusing on what sets us apart: curated assortments, clean stores, and a fun shopping experience," a Target spokesperson elaborated in a follow-up interview.

This isn't the first time Target has made bold changes to adapt to market shifts. In 2023, the retailer revamped its return policy to curb losses from returns fraud, and in 2024, it introduced AI-driven pricing tools to optimize deals in real-time. Ending price matching could be seen as a continuation of this data-driven approach, where decisions are based on analytics rather than tradition. However, critics argue that in an economy still recovering from inflationary pressures, removing a consumer-friendly perk might alienate price-sensitive demographics, particularly low-income households and millennials who prioritize value.

From a macroeconomic perspective, this move reflects ongoing challenges in the retail sector. With inflation cooling but consumer spending cautious, retailers are under pressure to maintain margins without alienating shoppers. The U.S. retail industry has seen a wave of consolidations and policy changes, from CVS limiting coupon stacking to Costco adjusting membership perks. Target's stock, which dipped slightly following the announcement, may recover if investors view this as a cost-saving measure that boosts profitability.

For shoppers, the end of price matching means adapting to new strategies. Experts recommend using browser extensions like Honey or Capital One Shopping for automatic price comparisons, or leveraging credit card perks that offer price protection. "Consumers have more tools than ever," says Thompson. "The onus is shifting from retailers to individuals to find the best deals."

In conclusion, Target's decision to sunset its price matching policy underscores the dynamic nature of modern retail. As the company charts a course toward innovation and efficiency, it bets that loyalty will come from experiences rather than guarantees. Whether this gamble pays off will depend on how well Target communicates the value of its remaining offerings and how consumers respond in an increasingly digital shopping world. For now, the era of easy in-store price adjustments at Target is coming to a close, signaling perhaps the beginning of a new chapter where competition is won not on price alone, but on holistic appeal.

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