Target is matching the online prices of over 20 rivals, including Walmart and Amazon, beginning Oct. 1. This is a big step for the retailer that, until recently, only matched prices at its physical stores.
The Minneapolis-based company is giving customers additional advantages at the start of fall. The window for getting a price adjustment has increased from seven to 14 days, and the number of online competitors to match prices with is now 29. Names like Costco and Sam's Club have been included, even though these stores require membership. For comparison, up until Oct. 1, there were only five retailers on that list.
Target scored a 30 percent increase in online sales during the latest quarter, and the future marketing strategy aims to increase that number. Brian Cornell, who has been leading Target as CEO since August 2014, plans to extend the retailer's market share by attracting the clients of other store chains.
The retailer set a precedent last holiday season when buyers got free shipping regardless of the order's price. Now, the company pampers customers by lowering the necessary cap for free shipping from $50 to $25.
"These are simple changes, but they mean a lot for our guests," shared Jason Goldberger, president of Target.com.
Matching prices with online rivals began timidly in 2012 during the holiday shopping spree and extended throughout the whole year in 2013. At the end of 2014, Target made it official that it is matching its store tariffs with online price tags from sites like Amazon.com.
Target notices and emulates the moves of its competition: Best Buy, Walmart and Staples already do the online matching with rival retailers. Toys R Us, on the other hand, matches in-store prices with those of online peers but applies identical prices only between their own virtual and physical stores.
Very few customers realize the difference price matching makes when they buy a product online, believes Sucharita Mulpuru-Kodali, an analyst from technology and market research company Forrester Group.
For most customers, it becomes much more apparent when the purchase is made in a store. Teams of customer service representatives at Target.com now help customers match prices with a simple phone call.
"They have to get on the price-matching bandwagon," Mulpuru-Kodali said, referring to Target's new approach.
The switch to online price matching is becoming a trend, and important retailers, such as Target, are wasting no time in seizing the opportunity.
Photo: Mike Mozart | Flickr
