Target drops competitor price matching starting Monday

• The change runs the risk of alienating price-conscious shoppers, especially those who've come to rely on the rare policy in a competitive retail landscape.

The big picture: Target confirmed to Axios that it is updating its "Price Match Guarantee" policy starting Monday, July 28.

• "We've found our guests overwhelmingly price match Target and not other retailers, which reflects the great value and trust in pricing consumers see across our assortment and deals," a spokesperson told Axios.
• The new policy drops the external comparison but still allows shoppers to match Target's online prices in stores.

Zoom in: The move aligns Target more closely with Walmart's price policy, which only matches between its stores and website — with manager discretion. Amazon does not offer price matching.

• Kristin McGrath, senior editor at the Krazy Coupon Lady, tells Axios it's the end of an era, even though Best Buy and Home Depot currently offer competitor price matching.
• "Target's change means shoppers have lost their final option for getting matched prices on everything from toys, to home goods, to electronics under one roof," McGrath said.

What they're saying: Target said the update was driven by limited use of the competitor match, but retail experts suggest more is at play.

• "They claim few people were using the policy, but if that's the case, then why is there a need to change it?" GlobalData managing director Neil Saunders told Axios. "This probably doesn't impact the majority of shoppers, but it does remove the peace of mind that price matching provided."
• "One challenge with price-matching a very small number of specified retailers is that it can present a retailer as a follower rather than a leader on price," John Mercer, head of global research at Coresight Research, tells Axios.

The bottom line: Target may be better served by emphasizing everyday value, private-label strength and strong inventory, Mercer said.