BIZ blog: Target takes on WalmartTarget's plans to offer 5 percent discounts on all Target card purchases is to steal market share from Walmart.
Business, consumer and economic tidbits from DNT reporter Candace Renalls. Click here to view previous posts or additional resources.
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.