i also noticed the app matching the in-store price based on location. and yup, store employees will match online prices without question, but only if you ask.
i don't shop there much anymore, but i've done bopus (buy online, pick up in store) before to get the online price directly.
If you have accepted location permissions for the Target app, the app will show the in-store price when it can tell you're in a store.
The only way of knowing this is that in smaller/lighter print under the price, it'll either say "Online" or whatever store location.
The most egregious example was an item I bought that cost 40% more in-store versus online, and you'd never know had you looked at the app.