With tariffs hanging over the economy, many retailers have assured customers and investors they will do their best to hold the line on pricing. But this week, two major retailers garnered headlines for major changes to their pricing strategies that could reflect rising pressures from President Donald Trump’s trade policies.
Let’s start with Amazon. Over the past five months since tariffs took effect, the company has raised prices upwards of 30% on 1,200 low-cost essential goods, per a Wall Street Journal analysis. These price hikes came after Amazon very publicly stated that keeping prices low was its top priority.
- “We’re doing everything we can to keep our prices low for customers in a way that makes economic sense,” CFO Brian Olsavsky told investors in May.
- In the same call, CEO Andy Jassy said the company was “maniacally focused” on the goal of keeping prices down.
The price hikes ran the gamut of “everyday essentials,” to use Amazon’s term, ranging from deodorant and laundry detergent to canned soup and beans.
Target, meanwhile, is reportedly ending its company policy to match prices with competitors such as Amazon and Walmart.
According to the company website, its current policy is to “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).”
Now the plan is to update the “Price Match Guarantee” later this month.
“We’ve found our guests overwhelmingly price match Target and not other retailers, which reflects the great value and trust in pricing consumers see across our assortment and deals,” Target told USA TODAY.
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