Consumers are starting to see rewards coming from every direction as stores try to earn more business over the holiday season after the recession. In fact, the rewards are so enticing they are giving major credit cards a run for their money.
People are finding ways to earn rewards at their favorite stores instead of earning airline points with their major credit cards. Many are saying the airline points are not as appealing anymore since they don’t have a lot of travel plans during these difficult economic times. However, earning rewards that could help reduce some of the costs of their Christmas shopping seems like a win.
Target announced that customers who use their Redcard will receive an additional 5% off of their purchase at the check stand. This is driving many consumers to put away their major cards when shopping at Target. Those who don’t already have a Redcard are going to be getting one soon to take advantage of this discount.
These are the types of savings consumers are looking for. It’s an immediate reward that instantly benefits their wallets. Target says this reward plan was created on purpose to compete with major credit cards. They also say it will help them to better compete with Wal Mart.
Toys R Us is following suit for the holiday season. They say they’re adding a 10% back offer to their loyalty program. Purchases of $500 or more will qualify for this discount. In the case of Toys R Us, customers don’t need to have a credit card with the store, they only need to present the discount card with any payment method they prefer.
This program will start on Sunday and end on Christmas Eve. Toys R Us hopes this reward program will get more customers in the door during the holiday season.
Even Kroger is jumping on the bandwagon. Customers will begin earning points towards free groceries beginning in November when they use Kroger’s 1-2-3 rewards Mastercard. Customers will earn double points when they make purchases at Kroger supermarkets and triple points for purchasing their private-label brands.
Not to be outdone, Chase is also offering more rewards on their Freedom card until December 31. They will give back 5% on purchases up to $1500 in department stores, movie theaters, and grocery stores during the holiday season. A savvy consumer could double up on rewards by using this card at a store like Toys R Us who are offering rewards without requiring the use of a specific card.
Higher income earners and consumers who travel often are still enamored with cards that offer airline miles. So, some of the major credit card companies who offer these types of rewards won’t need to be overly worried, since there is still a demand for what they’re offering.
But, the retailers are doing whatever it takes to get customers to shop in their stores, so it’s likely consumers will find a rewards program at any large chain. Their hope is to appeal to customers who are accustomed to shopping for the lowest price, by offering a different way to save instead of being 100% price driven.