Price matching has become an increasingly important practice for retailers to stay competitive and build customer loyalty in the age of digital shopping. A recent study by the National Retail Federation and Forrester found that 62% of retailers offered some type of price matching in 2020, up from just 50% in 2018. And according to a survey by RetailMeNot, 76% of consumers said they have made a purchase from a retailer specifically because of a price match policy.
Two retail giants that have embraced price matching are Target and CVS. But how exactly do their policies stack up, especially when it comes to matching their own online prices? As a long-time bargain hunter and student of the retail industry, I‘ve put their terms under the microscope to highlight the key similarities, differences, and insider tips you need to know.
The Nuts and Bolts of Target‘s Price Match Guarantee
Target‘s price matching policy has a few key pillars:
- They will match identical items (same brand, size, quantity, color, etc.) found for a lower price on Target.com at the time of purchase or within 14 days after purchase.
- Proof of the current lower Target.com price must be shown via website or app (no photos/screenshots).
- Target Circle offers, registry completion coupons, and promotional discounts cannot be combined with price matching.
- A variety of product categories and services are excluded, such as clearance items, alcohol, gift cards, optical, items sold by Target Plus Partners, and more.
When shopping on Target.com, you can also request a price match if you find a lower price in-store or on Target.com within 14 days of your order by calling Target Guest Services at 1-800-591-3869.
Target has really positioned their price match guarantee as a way to give customers peace of mind and flexibility. "Our guests appreciate having options, whether it‘s shopping in a store, online or with Drive Up or Order Pickup," said Christina Hennington, Target Executive Vice President and Chief Growth Officer. "And we want to give them confidence they‘re getting the best value no matter how they choose to shop with us."
Unpacking the CVS Price Match Policy
CVS also offers price matching, but with some notable differences compared to Target:
- Customers can request a price match if they find an item purchased in-store or online at CVS.com for a lower price within 14 days by showing their receipt or order number.
- To request an online price match, customers must contact CVS Customer Service by phone or through the website.
- Exclusions include clearance items, limited quantity/time offers, bundle deals, gift with purchase, and all pharmacy products.
- Matching is focused solely on CVS.com prices, not competitors.
One key difference is that CVS does not allow price matching of competitor prices, either in-store or online. They are primarily focused on syncing prices across their own channels. This policy is likely aimed at driving loyalty and repeat purchases within the CVS ecosystem.
"At CVS, we are committed to providing our customers with the best possible value," said George Coleman, Vice President of Merchandising. "By price matching CVS.com, we can give shoppers confidence and consistency whether they buy online or in the store."
Comparing the Fine Print: Target vs CVS
So how do these two retail behemoths really measure up in the price matching game? Let‘s look at it by the numbers:
| Policy Element | Target | CVS |
|---|---|---|
| Match own online prices | Yes | Yes |
| Match competitor prices | Limited | No |
| Adjustment period | 14 days | 14 days |
| Proof required | Online price | Receipt |
| Category exclusions | Several | Several |
As you can see, both retailers offer price matching within a 14-day window for their own online and in-store prices. However, Target does have the edge in matching select competitor prices, both in-store and online.
Some of the common items excluded at both retailers include:
- Clearance and closeout items
- Limited time promotions and bundles
- Items sold by marketplace/third-party sellers
- Pharmacy and optical products
- Alcohol (varies by state law)
So when might you choose to use price matching at Target vs CVS? Here are a few examples:
- You bought a small kitchen appliance at a Target store but later found it $15 cheaper on Target.com. You could bring your receipt back to Target within 14 days and get refunded the difference on the spot.
- You stocked up on diapers and wipes during a CVS sale, only to see the price drop even lower on CVS.com the next week. You can contact CVS customer service within 14 days of your purchase to request a price adjustment for the difference.
- You are comparing prices on a new electric toothbrush and notice it is $10 cheaper on Amazon than in the Target store. Target will match Amazon‘s price at the register as part of their competitor match program (as long as it is sold directly by Amazon and not a third-party seller).
"Price matching can be a powerful tool for driving conversion and building trust," said Louisa Smith, a retail pricing consultant. "But retailers need to be strategic about where they focus those investments based on their overall positioning and target customers."
The Psychology and Strategy of Price Matching
So why do retailers like Target and CVS bother with price matching in the first place? The simple answer is consumer psychology.
Behavioral economists have long studied the concept of "reference pricing," which suggests that people tend to anchor their perception of value and fairness to an initial price point. If a shopper sees a product online or in a competitor‘s store for $99, that becomes their mental reference point. If they then see the same item in your store for $125, it will feel like a "rip-off" even if $125 was a perfectly fair price based on your costs and margins.
Price matching helps reset that reference point by saying to the customer, "You can trust us to always give you a fair price, even if you spot it cheaper somewhere else." It reduces the cognitive load of having to continually comparison shop before making a purchase decision.
Different types of retailers use price matching to support their larger strategic goals. For a value-focused retailer like Walmart, broad price matching is a way to reinforce their "everyday low price" positioning. For more specialty retailers, selective price matching on a narrower range of items can provide reassurance without sacrificing too much margin.
Retailers also have to weigh the operational costs and challenges of price matching at scale. It takes significant data and systems integration to sync prices across channels in real-time, especially when you factor in promotions, inventory, and marketplace sellers. There are labor costs for processing price match requests. And there is always the risk of fraud or abuse by shoppers (or even employees).
When evaluating a price match strategy, retailers must ask: How often are people actually using it? Is it driving enough incremental sales and loyalty to justify the costs and margin erosion? Are there certain customer segments or product categories where it matters more? How can we streamline the process to limit friction for both shoppers and store associates?
"Effective price matching is both an art and a science," said Mohammed Iqbal, CEO of retail analytics platform Pricematic AI. "Retailers need a unified real-time view of competitive pricing and need to empower their teams to make smart decisions about where and when to match. But they also need to be weighing the long-term impact on customer perception and behavior."
Maximizing Your Savings: Tips for Price Matching Success
As a savvy shopper myself, I‘ve learned a few tricks to get the most mileage out of price matching policies:
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Get in the habit of checking prices on your phone while shopping in-store, especially for bigger ticket items. It only takes a few seconds to pull up the Target or CVS app and could save you some serious cash.
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Pay close attention to model numbers, colors, and sizes. Even minor variations can be grounds for a retailer to deny the price match. When in doubt, ask a store associate to double check.
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Set calendar reminders to check for price drops in the 14 days after you buy something. It may feel tedious, but getting back $10-$20 here and there can really add up.
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If you are a loyalty member, check your rewards balance before requesting a price match. In some cases, you may save more by applying points or a promotional offer instead.
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Don‘t be afraid to ask for a price match, but be prepared for some pushback on certain items. Clearance, limited quantity doorbusters, and third-party marketplace sellers are common points of contention. Stay calm and polite, but be ready to walk away if needed.
Ultimately, price matching is just one tool in the savvy shopper‘s arsenal. Combining it with smart timing, coupons, loyalty rewards, and a little extra legwork can help you come out ahead in the long run.
The Price Matching Playoffs: Looking Ahead
As online shopping continues to gain share across nearly every retail category, the role of price matching is likely to evolve in a few key ways:
- More automated and integrated processes for syncing online/offline prices and honoring price matches
- Greater focus on using price matching as a lever for loyalty and lifetime value vs. one-time transactions
- Increased pressure to match prices from a wider range of competitors and marketplaces
- Growing consumer expectations for a seamless cross-channel experience and consistent value proposition
Target, with its sophisticated operations and well-established ecommerce presence, seems well-positioned to keep using price matching as a competitive differentiator. CVS may need to reevaluate its approach as the lines between retail and healthcare continue to blur and digital upstarts eat into its core front-store business.
"Price will always be important, but price matching is really a means to an end," concludes Brendan Witcher, Vice President and Principal Analyst at Forrester. "The real goal is earning that customer‘s trust, loyalty, and repeat business. Retailers that integrate price matching into a more holistic, customer-centric strategy will have the advantage."
Only time will tell how the great price matching wars shake out. But one thing is for sure – I‘ll be watching the ads and keeping my phone handy for quick price checks on my next Target run. Happy bargain hunting!
The views expressed in this article are my own and do not represent any specific retailer or organization. While I have over a decade of experience working in retail merchandising, marketing, and ecommerce, I encourage you to research and verify all policies discussed. Some product categories or details may vary by location.
