Target to Roll Out Savings Reward With Its Credit Card

The discount chain will give customers 5 percent off purchases when they use a Target card.

June 08, 2010

MINNEAPOLIS - This fall, Target Corp. will begin rewarding customers who use a Target credit card at its stores with an instant 5 percent discount off their purchase, the Minneapolis Star Tribune reports.

"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," said CEO Gregg Steinhafel.

Kansas City stores tested the program for nine months. The results? Sales increased across all merchandise and customers who regularly shopped at the store really liked the program. The new program will take the place of the 10 percent discount that happened when the card was opened.

The company predicts that the new initiative will raise sales made with Target cards and also increase comparable-store sales by 1 percent during fourth quarter 2010. Next year, same-store sales are estimated to jump by 1 percent to 2 percent.

Target also changed its pharmacy rewards program by reducing the amount of prescriptions needed for a discount on future shopping days.

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