Target Announces Year-Round Price Matching

The move comes after a disappointing holiday season

   

Target 2 300x197 Target Announces Year Round Price MatchingTarget (NYSE:TGT) will continue to match the prices offered by certain online competitors.

Price-matching, initially introduced for the holiday shopping season, will now be offered all year round. The move comes after Target’s holiday sales proved lower than anticipated, CBS News noted.

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Discounted prices at competing stores and “showrooming,” the process in which consumers visit a brick-and-mortar store to look at an item before buying it online at a lower price, hurt Target’s sales this year.

In a bid to fend of agressive online rivals, Target will match prices on items found at the online stores of Best Buy (NYSE:BBY), Wal-Mart (NYSE:WMT) and Toys ‘R’ Us. The program will also be extended to cover items that are out of stock at Target’s online store.

A Target executive said that making the price-matching program permanent was meant to bolster consumer confidence in the retailer’s low pricing. Wal-Mart, the nation’s largest retailer, does not match the prices of its online competitors.

Shares of Target slipped about 1% in Tuesday afternoon trading.


Article printed from InvestorPlace Media, http://investorplace.com/2013/01/target-announces-year-round-price-matching/.

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