Target to Provide Immediate Incentive to Use REDcard
Holders of Target’s REDcards will soon have good reason
to expect more (savings) because they will indeed be paying less. The retailer
announced that "guests" who use the company’s credit and debit cards in its
stores and on Target.com will get an additional five percent off on all purchases.
new program, which will launch in the fall, replaces the 10 percent off coupon
that cardholders receive for a day of shopping with the current plan.
"We’re excited to offer this outstanding value to our REDcard
holders across the country," Gregg Steinhafel, chairman, president and
chief executive officer of Target, said in a press release. "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."
has been testing the program in its stores in Kansas City, Mo. since October
of last year and both the chain and consumers were happy with the results.
The chain believe it will add a percentage point or two to same-store sales
as a direct result of the move.
Another element of the program is a pharmacy
rewards offer where guests will receive a coupon good for five percent off
a future day of shopping every time they fill five prescriptions at a Target
pharmacy using the card. Currently, shoppers get 10 percent off a future day
of shopping after filling 10 prescriptions.
Discussion Question: What do you think Target’s new REDcard incentive program
will mean for the chain and its competitors?
- Target to Offer Cardholders Additional 5% off Already Low Prices Every Day
– Target Corporation/Business Wire/MarketWatch