My local petsmarts here honor their online prices and other legit online sites such as bigalsonline.com..=]
2 things:
1) This is awesome where applicable. This is where the variation from store to store can really work in your favor.
2) Again, I don't shop at petsmart(not like I'm opposed to it, just that there isn't one close to me and including shipping, foster and smith are chearp on big orders), but, if it is a corporate policy, you should contact corporate. This applies to any store. Corporate HQ, heck, even the store mananger in some cases, will never know of an employee's behavior/misaccordance with corporate policies unless someone tells them. Generally speaking, corporations don't set their goals to include "Give the worst possible customer service). The corporation wants to provide good service. They rely heavily on customer feedback.
The corporation will speak to the store manager. He will change that stores policy or he will be let go.