Target Corp.'s REDcard program is still proving to be a big success for the Minneapolis-based big-box chain.
Minnesota Public Radio reports more shoppers are taking advantage of store-branded credit and debit cards that offer at least 5 percent off all purchases. The program is also helping Target compete with rivals like Walmart.
"In the past, it was we were going to neutralize on price, because we didn't think we could win the price war. And we still don't want to get into price wars," Target CEO Gregg Steinhafel said in a recent speech. "But we now win when you add that 5 percent REDcard reward program."
The retailer won't say how many consumers have REDcards in their wallets, but the cards accounted for 17 percent of the company's U.S. sales its first-quarter -- which is a three-fold increase in just three years -- according to MPR.
Target earned $498 million in that three-month period -- down 29 percent from a profit of $697 million a year earlier. The retailer blames the disappointing results on soggy spring weather that kept shoppers from buying seasonal and weather-related merchandise.
Target is also in the midst of plans to open 124 stores across Canada this year — the company’s first venture outside of the United States.
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