Target takes on Walmart

Are you a Target person or a Walmart person?

Walmart may have the lowest prices in town, but Target’s got something pretty big planned that could sway some shoppers away from Walmart and give Target’s loyal customers even more reason to shop there.

Beginning this fall, Target will offer a 5 percent discount on all purchases made with a Target credit card. Not just for one day , but everyday.

"There’s no strings attached, not gotchas," says consumer advocate Clark Howard.

It’s got Howard changing his tune on his rule to never ever get a store credit card. They drag down your credit. And that great discount when you first open a store credit account is usually just for a day. Soon that staggering 25 percent (or so) interest on unpaid balances kicks in.

But Target customers will get that 5 percent off everyday.

The discount is expected to draw more customers to Target stores and encourage people to shop Target more often. The increased sales will more than offset the cost of providing this discount to cardholders, Target officials say.

2 thoughts on “Target takes on Walmart

  1. Glad to see Target doing this. I think this will help to sway some customers, but also add to their credit card portfolio if they ever intend to sell that. My question would be to see how Target offsets the profit margins on all of those items. Do they raise the credit card interest on the card holders or are we going to see targets prices increase over that of Wal-Marts? It would be interesting to see what their average prices were on items before this move and after this move. On the opposite side of the pricing strategy, the data that Target would control on all of those customers purchases is where everything is going. Target would know exactly what you purchase and could use that data to market to its customers further, thereby increasing sales through a better understanding of its customers in each market down to the individual (think Amazon.com).

  2. I am not a Wal-Mart shopper because of their predatory pricing in small communities and their employee compensation practices.

    I am not and will not be a Target shopper because of their anti-gun, anti-second amendment positions and because of their pro-Sierra Club position.

    I still shop at mom and pop’s, but don’t mind Menards and Home Depot, since they are pro-gun, anti-Sierra Club and pro-NASCAR. You have to support those who support you.

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