Target Is Testing a New Loyalty Program

Mar 21, 2018

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Target is testing out a new loyalty program, Target Red, which would offer customers cash back and discounts on delivery.

As part of the program, Target Red members would receive 1% cash back on purchases that they can redeem on their next visit, free next-day delivery with Target Restock and half off a Shipt grocery delivery membership. Currently the program is only being tested in the Dallas-Fort Worth area, and it is an entirely different program than Target REDcard, which offers customers a Target debit or credit card.

Target REDcard members can sign up for Target Red, but they will not be able to stack the 5% REDcard discount with the loyalty program’s 1% cash back.

Still, Target Red members would save $4.99 in shipping on every Target Restock order. Restock is one of the retailer’s online shopping platforms that lets customers fill up a box of everyday household necessities and ship it at a flat rate.

Members of the new program would also save about $50 per year on a membership for Shipt, which Target acquired in December 2017 for $550 million. Shipt delivers groceries from several different stores (including Target). The service usually runs $99 per year, and Target Red members get 50% off the subscription fee. 

The test run of the new program comes at a time when many retailers are trying to compete with Amazon’s online grocery service and Prime’s two-day shipping policy, and as brick-and-mortar stores are trying to increase the number of customers walking through the door.

This isn’t Target’s first crack at a loyalty program. In 2016, the retail chain tested its Cartwheel Perks program, which converted customers’ purchases into points that could be redeemed on other specific items. The program was seen as too complicated, and Target scrapped it.

As an added perk, members of the loyalty program will also be able to vote for which local organizations receive charitable donations from Target.

H/T: Tech Crunch

Featured image by George Frey/Getty Images.

Chase Sapphire Preferred® Card

WELCOME OFFER: 80,000 Points

TPG'S BONUS VALUATION*: $1,650

CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

Apply Now
More Things to Know
  • Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
  • Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
  • With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
  • Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
  • Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.
Regular APR
15.99%-22.99% Variable
Annual Fee
$95
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit
Excellent/Good

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.