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Target Corp. announced last week that starting this fall, its customers “will receive 5 percent off at check-out every day when they use a REDcard at any Target store or on Target.com. Target’s REDcards include the Target Credit Card, Target Visa Credit Card and Target Check Card debit product.”

In addition, the company said, shoppers “will receive a coupon good for 5 percent off a future day of shopping every time they fill five prescriptions at a Target pharmacy with a Target REDcard. Guests in the program currently receive a coupon good for 10 percent off a future day of shopping every time they fill 10 prescriptions at a Target pharmacy with a Target REDcard.”

“We’re excited to offer this outstanding value to our REDcard holders across the country,” said Gregg Steinhafel, Target’s CEO. “We believe guests will appreciate the simplicity and compelling value of this program, which will lead them to choose to shop more often at Target. As a result, we expect this new program to drive profitable incremental sales, which will more than offset the cost of providing this everyday discount to our cardholders.”
KC's View:
I’m not taking sides here, but...

One of the things that Walmart’s Mike Duke talked about in that company’s annual meeting is “price transparency.”

Maybe I’m wrong, but it sounds like what Target is saying is that if you pay cash, or use another credit/debit card, you are going to pay five percent more for products bought there.

If I’m Walmart, it seems to me that the response to this strategy is pretty simple. The ads go something like this: “Pay any way you want. We’re still cheaper.”