Target launches a rewards program in the Cartwheel app

September 12, 2016 04:33 PM

Target Corp. is testing a new rewards program in its in-store couponing app Cartwheel at 126 stores. 

The program, called Cartwheel Perks, lets shoppers earn points for each dollar they spend shopping at physical Target stores. Each dollar is worth 10 “Perks points.” When a shopper has 5,000 points—or has spent $500 at Target—she can redeem them for one of 25 products worth between $10-20, such as a C9 athletic apparel product, toys, earbuds, sunglasses and laundry detergent. The app has a “Perks” tab so a shopper can see how many points she has.

At checkout, a Target employee scans the shopper’s Cartwheel barcode to redeem the Cartwheel discounts and earn the points. Shoppers earn points regardless if there is a Cartwheel deal or not. CVS pharmacy purchases and gift cards are excluded from the program.

Currently the rewards program is only available for in store purchases, but Target plans to add online purchases to it in the future, says a Target spokesman without revealing specifics. 

Target, No. 22 Internet Retailer 2016 Top 500 Guide, created the rewards feature because shoppers consistently requested it, the retailer says. The pilot program is live at 41 stores in Denver, 40 stores in Houston, 23 stores in St. Louis and 22 stores in San Diego.

The Cartwheel app, which launched three years ago, has 27 million shoppers signed up for it and has generated more than $600 million in savings via its coupons, the retailer says.

Typically, the Cartwheel app has about 500-700 offers available, with discounts that range from 5% to 40%, a Target spokesman says. In April, Target updated Cartwheel to offer single-use, dollar-amount manufacturer coupons, such as deals on Honey Nut Cheerios and Skintimate Shave Gel.

Cartwheel is ranked as the No. 18 app in the shopping category in the Google Play app store for the Aug. 13-Sept. 10 period, according to data from digital analytics firm SimilarWeb Ltd. This is higher than the Target shopping app, which ranks No. 34. SimilarWeb ranks Android apps based on an algorithm that factors in current installs and active users.




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