Also from Max Goldberg...
January 9, 2013
Target's decision to match prices on Amazon.com and other sites during the holiday season must have worked out pretty well because the chain announced that it is instituting the policy year-round. Is Target's price match policy the right way to address consumer showrooming activity? [more...]
If you want to race towards the lowest price, then price match is the way to go. It is not, however, the way to build a successful business, unless you are Walmart. The strategy will garner PR for Target, but it will not improve the company's sales or bottom line.
Reports that I read said that few Target customers took advantage of price matching during the holiday season and that even with price match, Target's sales were flat.
Target has been down this road before. The last time it tried to compete on price it failed. Target's core story is cheap chic. Why would its management now want to shift that story to price?