Dive Brief:
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Target Corp. announced Wednesday that it will expand its price-matching policy to take on 29 rivals, up from five, as of Thursday, including their online prices.
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The move will include retailers as diverse as Macy’s and Costco, which, along with Sam’s Club (also on the new list) requires a membership to shop. And it will for the first time include Target.com and no longer just stores, the company said.
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Items must be the same SKU, so the multi-packs or larges sizes of seemingly identical products, like those found at warehouse stores, may not qualify. But shoppers have two weeks to gain a price adjustment, longer than the current week.
Dive Insight:
Target’s move shows how far brick-and-mortar retailers have come in competing on price, as e-commerce has expanded and as smartphones have enabled consumers to find lower prices even as they stand in a store.
“It’s what companies have to do in this new world of retail,” Edward Jones retail analyst Brian Yarbrough told the Minneapolis Star-Tribune. “Pricing has become so transparent over the last few years.”
Best Buy, for example, has also focused on price-matching as a way to stem flight from its stores to rivals like Amazon, to the point where its prices are just 3% higher on average, compared to 16% three years ago.
The process of gaining a price adjustment can be a hassle—shoppers who find cheaper prices online have to call a customer service number for example—but the option can keep them from departing the store without a purchase, experts say.