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MINNEAPOLIS — Target Corp. is testing a new rewards program, called Target Red.
The new program, which is not tied to a payment card, will be available from next month in the Dallas-Fort Worth area. It will offer shoppers 1% back on their Target, applied to future shopping trips to the retailer.
In addition, Target Red users can waive the $5 charge for Target Restock, and receive 50% off the first-year cost of a membership in its Shipt delivery service. Target acquired Birmingham, Ala.-based Shipt in December, saying it would leverage its stores and Shipt’s technology platform to accelerate the retailer’s efforts to bring same-day delivery to its shoppers.
Target has been exploring new ways to cultivate shopper loyalty since growth of its popular Redcard loyalty program began to plateau, according to the Minneapolis Star-Tribune, which first reported on the Target Red pilot.
Redcard holders are now most of Target’s biggest spenders and most loyal customers, the newspaper reported. Nearly a quarter of all purchases at the retailer are made with a Redcard. But growth in use of the card began to level off after tens of millions of Target customers had their financial and personal information stolen by hackers in 2013.
“When developing Target Red, we went straight to our guests to better understand what would be most meaningful to them in a loyalty program,” said Rick Gomez, executive vice president and chief marketing officer for Target. “That’s what they’ll see reflected in this test — a free and easy way to be rewarded simply for shopping at Target. On top of the shopping benefits, the program also aims to create a more personalized experience for our guests, like giving them a chance to help direct our community giving in their own backyard.”
Target Red members will get to vote on which organizations Target should focus its charitable giving.
