Target plays the price match card
by January 8, 2013 1:17 pm 115 views
The retail landscape continues to be reshaped by influences coming from the virtual world of e-commerce.
In a bold move Tuesday (Jan. 8), brick and mortar big box titan Target Corp. announced plans to match the online prices of its major e-commerce competitors including Amazon.com, Walmart.com, BestBuy.com and Toysrus.com (including Babiesrus.com).
Target said it will also require its stores to match prices for items found on its own website – Target.com all year long. 
The new policy, which takes effect immediately, builds on the company’s previous price adjustment and competitor price match protocol.
The timeframe to cash in on the lower price is limited to roughly one week or seven days. For instance, if a shopper buys a qualifying item at a Target store and then finds the identical item for less in the following week’s Target circular or within seven days on Target.com, Amazon.com, Walmart.com,Bestbuy.com or Toysrus.com or in a local competitors printed ad, Target will match the price.
Shoppers will have to take their price match requests to the customer service desk, the refunds can’t be made while inline at a regular cashier station.
Wells Fargo analysts say this move by Target is a symbolic one, but not likely to make that much difference on total sales because many of the fashion and accessories offered at Target are exclusive to the stores and not available online.
Consumers shopping electronics and baby merchandise are likely to take advantage, particularly on a larger ticket items.
“Guests can confidently shop at Target every day for the best value in retail, said Gregg Steinhafel, Target Chairman, president and CEO. We know that our guests often compare prices online. With our new price match policy and the additional 5% savings guests receive when they use their REDcard, Target provides an unbeatable value.”
By-in-large retail analysts approved of the price match strategy saying consumers are demanding this transparency leaving brick and mortar stores vulnerable to showrooming if they don’t offer the same lower prices year-round.
The announcement wasn’t enough to convince investors to get back onboard. Shares of Target were trading roughly 50 cents lower at $60.81 at noon on Tuesday.