Target never had the best prices, the deepest selection, or the most convenient delivery options. In fact, among the big three of retailers, it clearly fell behind Amazon and Walmart.
Related: Amazon’s quiet pricing twist on tariffs stuns shoppers
What Target did have was a great in-store experience and the trust of its customers. It was a magical place that, for a time, looked like it would replace the mall as a hangout spot.
You could get a Starbucks drink, try on some makeup from Ulta Beauty, and view an innovative array of owned-and-operated brands, including some big-name brands and celebrities. People were willing to overlook Target's (TGT) shortcomings because it did so many things so right.
It's hard to pinpoint exactly where that went wrong, but it certainly traces to the company's “woke” scandals. Instead of having a clear philosophy, the brand tried to straddle the middle and pleased nobody.
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Removing Pride merchandise and claiming “employee safety” was the reason did not make people on the left or right happy. Had the chain merely said “much like our rivals Walmart and Amazon, which both also sell Pride merchandise, we support all our customers.”
Instead, the company got branded as woke while it abandoned the left-leaning audience that support things like having access to restrooms matching your gender identity.
It wasn't any one move, but Target lost its magic, and it's making moves that seem to guarantee it won't get it back.
Image source: Shutterstock
Target goes back on a pricing pledge
People understand that their neighborhood grocery store won't offer the same prices as bigger, national brands. Target, however, is a major player, and its customers expect that especially on bigger-ticket items, the retailer won't be more expensive than its rivals.
That's something Target currently guarantees. The chain specifically offered protection in case Amazon or Walmart offered a better price.
“We’ll match the price if you buy a qualifying item at Target and then find the identical item for less at Target.com, Amazon, Walmart or with a Target Circle deal (deals that apply automatically upon identifying yourself as a Target Circle member). Price matches may be requested at time of purchase or within 14 days after purchase,” it shared on its website.
That seems like a very fair policy that protects its customers while also limiting the scope of who it price matches.
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You won't, for example, get a refund if Ollie's or HomeGoods sells an item at a clearance price. The deal only applied to Amazon and Walmart, but that was a good deal for customers which gave them peace of mind.
Target will end its price-matching policy on July 28.
Target ends its price-match policy
Ending the price-matching policy is a bad look for Target at a time when many customers are worried about the impact of tariffs on pricing. That's something Target CEO Brian Cornell vaguely addressed during the chain's first-quarter earnings call.
“As a company that's aimed to deliver great products and outstanding value, we're focused on supporting American families as they manage their budgets. We have many levers to use in mitigating the impact of tariffs, and price is the very last resort. Our strategy is to remain price competitive by leveraging the capabilities, long-standing relationships and the scale that set us apart for many of our retail peers,” he said.
Notice that Cornell did not rule out price increases. Last resorts are still resorts, and Target may, in fact, increase some prices relative to Target and Walmart.
The chain is also working to give shoppers more value options.
“In toys and sporting goods, our expanded assortment of items priced under $20 is performing well as we look to help families find even more affordable joy at Target. And in apparel, we saw strength in categories like women's swim, where new owned brand offerings at competitive price points beginning at just $12 provide the style and affordability consumers are looking for,” he added.
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Cornell also made it clear that Target was committed to having some very low-priced items.
“Bullseye's Playground, I think, is a great example. It's at the front of the store. It's the section where guests come in and they look to discover fun, seasonal, low-priced items, and we have made a commitment to keep those at $1, $3 and $5. It's important to the brand, but it's important to the guest. So to do that, we've evolved the assortment and we brought in some new trending beauty items and we've also brought in some new seasonal food and beverage items,” he added.
