How Target is responding to Amazon Prime and testing a new loyalty program

Although the Redcard program continues to be very successful, Target is experimenting with ways to compete more effectively with Amazon Prime. In our opinion, Target should push their community connections more strongly, countering Amazon's reputation for exploiting employees. 

Minnesota StarTribune: Target to test new loyalty program as Redcard growth has slowed, 2018-Mar-19 by Kavita Kumar

...as growth of its branded debit and credit cards has plateaued, Target is exploring other ways to generate more loyalty at a time when online shopping has exposed consumers to many more places where they can shop.

Toward that end, the Minneapolis-based retailer next month will begin testing a new rewards program in the Dallas-Fort Worth area. The pilot program is called “Target Red” and, unlike Redcard, is not tied to a payment card.

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

Shoppers who sign up for a free Target Red membership can use 1 percent of their purchase totals toward their next Target runs. Members can also waive the $5 fee for Target Restock, the next-day delivery service for household essentials and dry groceries. Members also will receive half off the first year of a $99 membership to Shipt to access Target’s new same-day delivery service.

Target Red members also will get to vote on which organizations Target should focus its charitable giving, a new twist on a now-defunct program previously connected to Redcard where shoppers could direct funds to the school of their choice.