News

Target expanding loyalty program strategy

March 27, 2018

Target is reportedly testing a new loyalty rewards approach with a pilot taking place in the Dallas-Fort Worth region.

The new strategy, called "Target Red," according to a Star Tribune report, is not linked to a payment card and comes at a time when the retailer is experiencing a stagnant point with its longtime Redcard 5 percent discount program.

"We know not everyone wants another credit card," said Joshua Thomas, a Target spokesman, told the Tribune. "So we want to find a way to grow our relationship and affinity with those guests."

With the new membership program shoppers can use 1 percent of their purchase total toward a future Target check-out, and also don't have to pay the $5 cost for use of Target Restock, which is the retailers next-day delivery service. Those participating also get the first year of a Shipt same-day $99 delivery membership at 50 percent discount.

"Consumers have so many choices today," Thomas told the Tribune, "so any opportunity we have to better understand them is a win."