As we reported recently (in a post on its shopping-driven store design), Target is doing everything it can to stimulate greater customer business. In December 2012, the retailer experimented with in-store matching of online prices from selected competitors. Now, it has decided to make the price matching permanent.
Target’s price matching pledge is stated at its Web site: “If you buy a qualifying item at a Target store then find the identical item for less in the following week’s Target weekly ad or within seven days at Target.com, Amazon.com, Walmart.com, BestBuy.com, ToysRUs.com, BabiesRUs.com or in a competitor’s local printed ad, we’ll match the price. Price match may be requested at Guest Services prior to your purchase with proof of current lower price or by bringing in your original Target store receipt and proof of the current lower price.”
What exactly does Target hope to achieve by this tactic? Justin Bomberowitz offers some interesting conclusions at http://connected.retailnetgroup.com:
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“The choice to accept lower margins in exchange for saving the sale is the lesser of two evils.”
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“These policies likely have a bigger impact on price image than on net price to the consumer”
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“Price matching can backfire on key items if one particular retailer with a limited stock creates a promotion, sells through its stock, and leaves all other price-matching retailers responsible for honoring the price match.”
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“Amazon appears to price more aggressively vs store-based retailers if store-based retailers’ online pricing is more competitive with Amazon.”
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