Target Corporation recently announced changes that could save loyal customers big bucks when making purchases at Target stores.
Starting on October 17, 2010, shoppers at Target stores will save five percent off of the total price of their purchases every time they use any Target REDcard, which includes the Target Credit Card, Target Visa Credit Card, or Target Check Card debit card.
This new program has been tested in the Kansas City area market for the past nine months and has proven to boost sales. It has also led to an increase in applications for both its Target Credit Card and Target Check Card debit card.
This new reward benefit will replace the 10 percent discount taken at the time any Target REDcard is opened as well as occasional discount shopping days.
Target recently discontinued issuing new Target Visa Credit Cards, but for current Target Visa cardholders, the cards will still be valid, and the five percent discount on Target store purchases will still be available to those cardholders.
Target will continue to issue Target Credit Cards and Target Check Card debit cards. An added benefit of opening any Target REDcard is that Target will donate 1% of a cardholder’s REDcard purchases to the eligible school of the cardholder’s choice.
Target will also modify its pharmacy rewards program, lowering the number of prescriptions it takes customers to get a discount on a future shopping day. Currently, customers need to fill 10 prescriptions and purchase them on a Target REDcard to receive a 10 percent discount card to use on a future shopping day. With the new program, customers will only need to fill five prescriptions to receive a discount card. However, the bonus will be reduced from a 10 percent discount to a five percent discount as well.
In addition to the new rewards program, Target has implemented a few other changes. In early 2010, Target began matching competitors’ prices on advertised items. Target also has been adding grocery departments in many of its stores, offering more fresh food and a wider variety of refrigerated and frozen foods, which has resulted in more shopping visits from Target patrons.
Target estimates that with these new changes, sales will increase and enhance earnings per share.