The 5% REDcard Rewards program Target launched last fall has contributed to sales results and served as a game changer on the pricing front with Walmart. Savvy shoppers are increasingly realizing the additional 5% savings they receive by using their REDcard can result in the price of a basket of food and consumables at Target slipping below the price of a comparable basket at Walmart.
Now, Lowe’s is looking to accomplish a similar feat against Home Depot and has launched its own variant of the 5% program just six months after Target’s nationwide rollout. When shoppers at Lowe’s pay with the retailer’s branded credit card they receive an immediate discount of 5% on in-stock and special order merchandise whether purchased in stores or online. Although similar to Target’s REDcard Rewards, Lowe’s program comes with a few disclaimers, which could prove aggravating to shoppers. For example, the 5% discount isn’t available on the purchases of services, can’t be used in conjunction with coupons or with Lowe’s low-price guarantee, which already offers a 10% discount to shoppers who find an identical item elsewhere at a lower price. By comparison, Target’s program is clean and straightforward, offering shoppers 5% off of everything all the time even if they have coupons.