Target adds time and retailers to its price-matching policy
September 30, 2015 10:39 AM
(Bloomberg)—Target Corp. is expanding its price-matching policy in stores and on its website, a sign of escalating competition with Amazon.com Inc. and other retailers.
Starting Thursday, Target, No.16 in the Internet Retailer 2015 Top 500 Guide, will match a longer list of competitors’ prices, going back as far as 14 days, the Minneapolis-based retailer said in a statement Wednesday. The previous policy had only extended back seven days and didn’t include as many competitors. Warehouse clubs such as Costco (No. 11) and Sam’s Club are now part of the list, as are 22 others.
The change is the latest move by mass retail chain to prove they can compete with e-commerce sites on price. Wal-Mart Stores Inc. (No.3), Target’s biggest competitor, also has renewed its focus on price in the past year, putting pressure on suppliers to lower their costs.
In August, Target offered free shipping and returns on all purchases on its website for two weeks. The promotion ended Aug. 15, and the retailer returned to its standard shipping policy. Target has one of the lowest free shipping thresholds of all retailers ranked in the Internet Retailer Top 500. In February the retailer cut its free shipping threshold in half to $25 from $50.
Target CEO Brian Cornell has been working to reduce expenses and refine the chain’s product assortment, a turnaround effort that followed a sales slump and massive data breach in the holiday season of 2013.