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By Mike Black · July 29, 2025 · Curated by George's Blog
Yesterday, #Target ended its price matching policy after 12 years. Why? Because price matching #Amazon DESTROYS profits.
Below are the head to head average online price differences between Target and Amazon vs Walmart and Amazon from Profitero+'s 2024 Price Wars study.
Across all categories and 13,000 items we analyzed daily for 3 months, Target was an avg 13% more expensive than Amazon on exact-same items.
In fast moving #CPG categories like Beauty, Personal Care and Packaged Foods the retailer was 21% more expensive or higher.
Target has always played to a more affluent shopper, and they don't want to be a place that caters to deal seekers by chasing Amazon / Walmart in a race to the bottom price war.
Target's retailer price-matching policy anchored the highest price they can charge to whatever Amazon sets. Since Amazon’s prices are often significantly lower, this severely compresses margins—sometimes leaving little to no profit for Target.
For more data on price competition amongst #ecommerce retailers, check out our 2024 Price Wars study via the link below. 👇
Our 2025 edition will be out in November ahead of Black Friday. #digitalshelf