Target says it does not use customer data to raise prices

• Target does not adjust prices based on time of day or periods of high demand, unlike dynamic pricing models
• The Target Circle loyalty program collects shopping history to offer relevant deals but does not increase prices for individual customers
• Walmart also recently denied using digital shelf labels, AI tools, or its chatbot Sparky to implement dynamic pricing

Summary: Target Denies Using Customer Data for Dynamic Pricing

Key Development:

Target issued a statement on October 15 denying the use of customer data to implement personalized pricing strategies, following similar clarifications from competitor Walmart earlier this month.

Main Points:

• Target explicitly stated it does not adjust prices based on individual shoppers' identities, locations, time of day, or demand periods
• The retailer confirmed that price variations may occur due to legitimate factors including local operating costs, pricing regulations, competition, and channel-specific discounts
• Prices remain uniform for all customers shopping on the same platform or at the same location
• Target's loyalty program, Target Circle, collects customer shopping history solely for delivering personalized deals and promotions, not for raising prices

Industry Context:

Walmart recently made comparable statements denying the use of digital shelf labels and AI tools (including its chatbot Sparky) for dynamic pricing implementation. These announcements from both retailers suggest growing consumer and regulatory concerns about targeted pricing practices in the retail sector.

Market Implications:

The coordinated responses from major retailers indicate heightened scrutiny around data-driven pricing strategies. This transparency push may reflect efforts to maintain consumer trust amid increasing awareness of algorithmic pricing capabilities. The statements could influence how other retailers communicate their pricing policies and may preempt potential regulatory action regarding customer data usage in pricing decisions.

The retail sector appears to be proactively addressing concerns about price discrimination enabled by big data and AI technologies, potentially setting industry standards for transparent pricing practices.