Consumers wishing to take advantage of the program will need to bring in proof of current price, or if merchandise was purchased first from Target, bring in the original receipt and proof of a competitors' current price.
"I am not surprised that Target is extending its online price match program, it's a necessary evil to offer your customers in today's world where price matching is so easy," said Deutsche Bank analyst Charles Grom.
The big question though that remains for many investors and analysts is the impact on margins.
Susquehanna Financial Group analyst Bob Summers said, if a retailer is going to match price-to-price, it better get the cost structure aligned. Target is probably well-positioned with its costs, he said, but added he wants to dig further into the financials in the wake of the announcement to make a full assessment.
"On the margin front, relative to Walmart, Target's prices are pretty close, but they are exposed to Amazon, particularly in electronics and toys, which is part of the problem for them during the past few holidays," Grom said.
(Read More: Trouble in Toyland: Sales Slowing)
The other issue is many retailers have a lot to do to better integrate their physical and online businesses.
"These brick-and-mortars need to do a better job boosting their online presence," Summers said. "(A retailer's) online effort can't just be a holiday phenomenon. If you are trying to build traction with your website, you have to be priced appropriately."
Anecdotally, many retailers will, and have been, price-matching online competition, but the consumer has to take the initiative and often speak to a manager to secure approval. (Personally, I know I've had Best Buy match Amazon.com prices before the retailer ever officially announced its holiday program last year.)