As growth of Target-branded payment cards has slowed, the retailer is beginning to experiment with a new rewards program: Dubbed “Target Red,” the new program will not be linked to a debit or credit card, The Star Tribune reported.
“We know not everyone wants another credit card,” Joshua Thomas, a Target spokesman, told the newspaper. “So, we want to find a way to grow our relationship and affinity with those guests.”
Originally, Target was offering a 5 percent discount on purchases through its REDcard program, along with shipping benefits on its eCommerce website. As a result, almost a quarter of all Target purchases are now made with a Target REDcard.
However, through the free new program available in the Dallas-Fort Worth area, shoppers can take 1 percent off purchases and put it toward future visits at Target — without having to use a Target-branded credit card. In addition, members of the program can waive the $5 charge for Target Restock.
They also can receive 50 percent off the first year of a Shipt membership.
The news comes as Target is aiming to roll out same-day delivery to most of its stores before the 2018 holiday season. At first, same-day delivery will apply to groceries, essentials, home goods, electronics and other products, but the discount retailer will expand the list of items included in the service over time. By the end of 2019, Target plans to offer same-day delivery for “all major product categories.”
Target acquired Shipt for $550 million in cash in Dec. 2017.
At the time, the retailer said it would leverage its stores and Shipt’s proprietary technology platform and community of shoppers to bring same-day delivery to customers around the country. The acquisition “significantly accelerates” Target’s digital fulfillment efforts, allowing the retailer to bring same-day delivery to about half of its stores by the early part of 2018.