Retail News Breaks Archives
Target to offer its cardholders an extra 5% off
June 3rd, 2010
MINNEAPOLIS – This fall Target Corp. plans to give customers an additional 5% off at checkout every day when they pay with a Target REDcard credit or debit card at any Target store or on Target.com.
The discount store chain said Thursday that the new rewards program will replace the current program, in which new cardholders get an initial 10% off coupon and existing cardholders earn coupons for 10% off a future day of shopping. Consumers participating in the current program will continue to earn points until the new program begins.
Target's REDcards include the Target Credit Card, Target Visa Credit Card and Target Check Card debit product.
In addition, Target announced a change to its pharmacy rewards program. Beginning this fall, consumers will receive a coupon good for 5% off a future day of shopping every time they fill five prescriptions at a Target pharmacy with a Target REDcard. Currently, consumers in the program get a coupon for 10% off a future day of shopping each time they fill 10 prescriptions at a Target pharmacy and pay with a REDcard.
"We're excited to offer this outstanding value to our REDcard holders across the country," Target chairman and chief executive Gregg Steinhafel said in a statement. "We believe guests will appreciate the simplicity and compelling value of this program, which will lead them to choose to shop more often at Target. As a result, we expect this new program to drive profitable incremental sales, which will more than offset the cost of providing this everyday discount to our cardholders."
Target said it has tested the REDcard program in Kansas City since October 2009 and the response has been "overwhelmingly favorable," particularly among "better and best" retail customers. Sales lifts have been relatively consistent across merchandise categories and stable throughout the test period, the retailer noted.
For the 2010 fourth quarter, the program is expected to add about one percentage point to comparable-store sales and have little to no impact on consolidated earnings, according to Target. The discounter added that program also stands to add between one and two percentage points to its same-store sales and be accretive to consolidated earnings in 2011.