Target Tests a Store Loyalty Program in Texas ‘Target Red’ [1% Back]

Target is testing a store loyalty pilot program in the Dallas-Fort Worth area called Target Red which offers 1% back on every purchase. Users will be able to redeem rewards toward  a future purchase online or in stores through their Wallet in the Target app. The 1% reward does NOT stack with the 5% REDcard discount.

Press Release

List of benefits:

• 1% back toward a future purchase
• Save 50 percent off a first-year membership on same-day delivery with Shipt, that’s a $50 savings
• Receive free next-day delivery on essentials with Restock, that’s a $4.99 savings
• Get the opportunity to vote for one of three local organizations to help direct Target’s community giving

Overall it sounds pretty nice. Given that there’s no additional bonus for REDcard users, it doesn’t mean a huge amount for me personally, but it could help convince me to use a different payment method other than REDcard when I need to rack up spend on another card since the ‘loss’ by doing so would only be 4% instead of 5%. We’ll have to wait and see how/when this rolls out nationwide.

Good chance that gift cards won’t earn 1%. Maybe those in the test area will get lucky and have it work initially at launch.

Hat tip to Techcrunch and TPG