Walmart Grocery now offers curbside alcohol pickup at 2,000 US stores

The online grocery wars continue. Amazon this week just made grocery delivery free, so Walmart is now touting how its grocery service offers the booze. The retailer today announced a new milestone in terms of giving its customers the ability to shop for alcohol online, noting that more than 2,000 Walmart locations across 29 states will now let you pick up wine and beer along with your other grocery purchases.

The alcohol pickup service has to abide by local laws, which limits its expansion in some cases.

In addition, Walmart says that now more than 200 stores in California and Florida are also offering alcohol delivery. It plans expansions on this front, as well.

Walmart has been slowly ramping up its online alcohol shopping options for some time, in accordance with local, county and state regulations. Its Sam’s Club subsidiary has offered this option, too, by way of Instacart. In the latter case, Sam’s Club has been able to offer delivery of spirits, like Tito’s vodka or those from Sam’s Club’s own “Member’s Mark” brand, among others.

Today, there are a number of ways to shop alcohol online, depending on where you live.

Target-owned Shipt delivers alcohol from some of its supported retailers (including Target) in some markets. Instacart, BJ’s and Amazon (Prime Now) do as well, in select cities, states and stores. And finally, services like Drizly, Saucey, Postmates and Uber Eats can help fill in the gaps, in some markets.

The problem with all these services is that consumers often don’t know which retailers offer alcohol delivery, or which app they should use. If you live in a more permissive state, this may not be as big of a problem — you’ll likely encounter an abundance of choices for same-day alcohol delivery. But in a more conservative state, your options may be more limited — or not available at all. And when consumers have to launch a half dozen apps just to figure out how to order booze online, most people will just give up and drive to the store.

That’s in conflict with Walmart’s larger goal, which is to allow shoppers to take advantage of its online grocery shopping to fully replace the traditional grocery shopping trip to the store. After all, if consumers are driving to the store, they’ll likely choose their local grocer, not necessarily Walmart.

To meet the needs of the online shopper, Walmart Grocery has to offer it all — not just food, but also adult beverages. If successful on speeding this option to market, Walmart’s brand could become known as the place to order online everything you need from the grocery store. And that, in turn, could help boost sales.

Walmart’s alcohol shopping feature works just like shopping for groceries — you search for what you want, add it to the cart, then check out. The only difference is that, upon pickup or delivery, you’ll be required to show your ID so the Walmart team member can verify your age.

Alcohol pickup is available in big states like California, Florida and Texas, and dozens of others, while delivery is limited to the first two states, for the time being.

American Cancer Society’s online store infected with credit card stealing malware

The American Cancer Society’s online store has become the latest victim of credit card stealing malware.

Security researcher Willem de Groot found the malware on the organization’s store website, buried in obfuscated code designed to look like legitimate analytics code. The code was designed to scrape credit card payments from the page, like similar attacks targeting British Airways, Ticketmaster, AeroGarden, and Newegg.

The attackers, known as Magecart, use their stolen credit card numbers to sell on the dark web or use the numbers for committing fraud.

de Groot said in a blog post explaining the breach, shared exclusively with TechCrunch, that the code was designed to send collected credit card numbers to a third-party server, operated by the attacker. The code was malformed, leading to it being inserted twice. When the malicious code was decoded, it revealed the web address of the the hacker’s third-party server.

acs magecart

The card skimming malware on the American Cancer Society’s store’s website. (Image: TechCrunch)

Trend Micro said the domain is known to be used by Magecart. The domain is registered in Moscow, but the website itself loads nothing more than a decoy page.

The code was injected into the online store at some point late last week. de Groot informed the organization of the incident as soon as he found the code on Thursday by calling its anti-fraud hotline, but the code was not immediately removed. After we reached out Friday, the code was no longer present.

American Cancer Society spokesperson Kathi Dinicola did not return requests for comment.

It’s not known how many users were affected, but anyone who entered information through the American Cancer Society late last week should contact their payments provider.

Toys R Us relaunches its website where online sales are powered by Target

Toys R Us is back online, thanks to a new deal with Target. Tru Kids, the parent company that acquired the defunct toy chain following its bankruptcy, has announced the relaunch of the ToysRUs.com website as it begins the process of opening its retail stores across the U.S. As a part of its comeback strategy, the Toys R Us website’s product pages will redirect to Target.com when consumers click the “buy” button to make an online purchase.

The retailers didn’t discuss the terms of the deal, but a revenue-sharing agreement is clearly involved in a scenario like this, given the mutual benefits. Toys R Us would be able to quickly establish cash flow from the still top-ranked, well-established domain name toysrus.com, while Target could get an influx of new sales from shoppers who visited ToysRUs.com, unaware of the toy chain’s bankruptcy and relaunch.

In addition to redirecting online shoppers to Target, the new website also features articles and videos about the latest toy trends and hot brands, plus in-depth product reviews, hot toy lists, and other brand experiences. These will be available on the ToysRUs website itself. Only when a customer is ready to make a purchase will they be sent over to Target for checkout.

The site’s “Buy” button is also clearly labeled so there’s no confusion at checkout. In Target’s red-and-white brand colors, it reads “buy now at [target].com” where the word “Target” is replaced with the Target logo icon.

Target shoppers sent to ToysRUs get the same benefits they would if shopping directly — meaning, they can place orders for delivery, curbside or store order pickup, and can earn loyalty points with Target Circle, or get 5% by paying with a Target REDcard.

Screen Shot 2019 10 09 at 10.51.19 AM

The new partnership between the retailers isn’t only focused on redirecting consumers’ traditional e-commerce product sales, however.

Target says it will also fulfill online sales when Toys R Us opens up its first experiential retail stores later this fall in Houston, Texas and Paramus, New Jersey.

Tru Kids had previously announced a deal with tech startup b8ta to create a modernized toy store experience featuring things like STEAM workshops, a treehouse for kids to play in, theaters for movies and games, and a way for brands to showcase their products in a more interactive environment.

At these stores, guests who want to purchase items that aren’t available in the store itself will be able to place their order with a store associate that gets fulfilled through Target.com.

“Target’s leadership in toys, digital and fulfillment are an unbeatable platform for ToysRUs to reconnect with their fans while we introduce them to the ease and convenience of shopping at Target,” said Nikhil Nayar, senior vice president of merchandising at Target, in a statement. “By applying our capabilities in a new way with ToysRUs, we can serve even more toy shoppers, drive new growth, and build on our toy leadership,” Nayar added.

The new deal with Toys R Us isn’t the only significant toy-related partnership Target has made in recent weeks. At the end of August, the retailer announced an agreement with Disney that sees it opening mini Disney stores within its retail stores, where shoppers can buy toys, apparel, collectibles, home items, and more. Twenty-five Disney “shop-in-shops” are open now and dozens more are planned for 2020.

“Our U.S. strategy is to bring back the ToysRUs brand in a modern way through a strong experiential and content-rich omnichannel concept,” Tru Kids CEO Richard Barry, a former Toys R Us exec, in a statement about the Target partnership.

“The foundation of that strategy requires the help of a retail industry leader and Target is the ideal retailer to support a new ToysRUs shopping experience, which is designed to provide families with endless ways to discover, play and enjoy toys. Target will help us deliver on that experience with its toy assortment, digital strength and ability to deliver orders to shoppers in a matter of hours,” he said.

 

Lookiero closes $19M led by MMC Ventures to be the Stitch Fix for Europe

Lookiero, the online personal shopping service for clothes and accessories, has closed a $19 million funding round led by London-based VC MMC Ventures with support from existing investor All Iron Ventures, and new investors Bonsai Partners, 10x and Santander Smart. The company will use the backing to expand in its main markets of Spain, France and the UK. In June last year it closed a funding round of €4 million led by All Iron Ventures.

The startup applies algorithms to a database of personal stylists and customer profiles to thus provide a personalized online shopping experience to its customers. It then delivers a selection of five pieces of clothing or accessories curated by a personal shopper to fit the customer’s individual size, style, and preferences. Customers then decide which items to keep or return (at no additional cost), allowing Lookiero to learn more about the customer’s tase before starting the whole process again.

By generating look-a-like profiles and analyzing previous customer interactions with each item, Lookiero says it can predict how likely a user is going to keep a certain item from a range of more than 150 European brands from a warehousing system that will ship more than 3 million items of clothing this year to seven European countries.

It’s not unlike the well—worn Birchbox model. Lookiero’s main competitor is Stitch Fix (US), which has upwards of $1.5bn in annual revenues and IPO’d November 2017.

Founded in 2015 by Spanish entrepreneur Oier Urrutia, the company says it now has over 1 million registered users and has grown revenue by over 200% from 2017 to 2018.

In a statement Urrutia said: “This investment round provides us with the necessary capital to further increase the accuracy of our technology, which is really exciting. It will allow us to offer the best possible experience for our users and to continue expanding across Europe.”

Simon Menashy, Partner, MMC Ventures, said: “The migration of fashion brands online has improved consumers’ access to clothing, and there is now an almost overwhelming amount of choice. At the same time, it can still be really hard to find exactly what is right for you, especially with high street retail stores in decline. Lookiero provides the best of both worlds, giving every customer a hand-picked selection from their personal stylist.”

Ander Michelena, co-founding partner of All Iron Ventures, said: “Even if what Oier and his team have achieved to date is remarkable, we believe that Lookiero still has great potential to continue expanding internationally and to become a player of reference in a market segment where there is still a lot to do in terms of innovation and user satisfaction”.

Walmart launches two new credit cards offering 5% back on digital purchases

Walmart is partnering with Capital One to launch a new credit card program, which rolls on September 24, and includes both co-branded and private-label cards. The former, the Capital One Walmart Mastercard, includes 5% back on purchases made on Walmart.com or paid for in-store using Walmart Pay (the latter for the first 12 months.) The private label card, the Walmart Rewards Card, will offer those same perks, but is limited to being used only in Walmart stores and on Walmart.com.

After the 12-month introductory period, the co-branded Mastercard will drop to 2% on Walmart purchases in stores, instead of 5%. However, it will continue to offer 5% on Walmart.com purchases, including Walmart Grocery.

It also offers 2% back on restaurants and travel and 1% back everywhere else. The card doesn’t include any annual fee or foreign transaction feeds, and its rewards can be used any time, Walmart says.

Customers can apply for the new card via Walmart’s website or app, or through CapitalOne.com. The application itself can be filled out using a mobile device and, once approved, customers gain access to the card immediately. They can also load the card into Walmart Pay or into the Walmart app before the physical card arrives in the mail — similar to how Apple’s new Apple Card works.

Through Capital One, customers will receive purchase notifications, security alerts, 0% fraud liability, and the ability to lock/unlock a lost or stolen card from the Capital One app.

The new Walmart store card, meanwhile, also offers 5% back on purchases on Walmart.com, in Walmart app, and on Walmart Pay in-store purchases during the introductory period. It then offers 2% back on Walmart purchases afterward. It also earns 2% back at Walmart Fuel Stations.

Current Walmart cardholders will be converted to the Capital One Walmart Rewards Mastercard or the Walmart Rewards Card, starting October 11, with physical cards arriving in November. They’ll also earn 5% back through Walmart Pay through October 14, 2020.

Walmart’s prior card, from Synchrony Bank, offered smaller rewards, noted Sara Rathner, credit cards expert at NerdWallet, in a statement published this morning.

“The Capital One Walmart Rewards Mastercard is definitely helping to cement 5% back as the gold standard among retail cards. We already see this rewards rate with the Amazon Prime Rewards Visa card and the Target REDcard. The previous Walmart card issued by Synchrony Bank only offered 3% back on Walmart.com and a paltry 1% back in-store, so the new card is a huge step up,” she said.

Credit card partnerships are an area of importance to major retailers, including Walmart’s chief rival, Amazon. Its credit card program includes a variety of options, including store cards, travel cards, prepaid cards, no annual fee cards, reward points cards and more. And of course both retailers today are, to some extent, challenged by Apple, which just entered the credit card space, too.

Branded store cards not only help to increase customer loyalty, they also drive more purchases, reduce credit card processing fees, create additional profit in the form of interest, and generate records of customer purchases that can be used for targeted advertising.

“As our company has evolved to serve customers shopping in stores, online, and on the Walmart apps, we also recognized the need to fully digitally enable the cardholder experience,” said Daniel Eckert, senior vice president, Walmart services and digital acceleration, in a statement. “That’s why we’ve worked with Capital One to make it possible for cardholders to manage essentially every interaction with the program right from the palm of their hands,” he said.

 

Amazon tests a one-tap review system for product feedback

Amazon is testing an easier way for people to leave product feedback with the launch of one-tap ratings. The change is meant to encourage those who don’t have the time, energy or interest in writing reviews to still share their opinion about the product, which benefits the larger Amazon community of shoppers who are reliant on ratings and reviews to make better purchasing decisions.

If you have access to the new experiment, you’ll be able to just tap once to leave your star rating on any item, without having to fill out additional fields like a review title and written review, as previously required.

You’ll also be able to access these one-tap ratings from a number of places, including the “Your Orders” page on Amazon where you can tap the “Write a Review” button; by going to a product page directly; or by responding to solicitations sent to you from Amazon or those that appear on the homepage when you log in.

The process of leaving a one-tap review is extremely simple — you just select the star rating and you’ll then see a green checkmark confirming the submission.

Only those one-tap ratings from Verified Purchases will contribute to the product’s overall star rating. You’re also able to expand on your feedback later on, if you choose, by adding a review, photos, or video.

amazon ratings test

The new feature could go a long way towards being able to collect feedback from a larger number of online consumers, as many don’t bother with writing reviews. It could also help balance out the ratings with feedback from real shoppers, as opposed to those who may have been incentivized or paid to leave reviews.

That’s against Amazon policy, of course, and is a practice the retailer has been cracking down on for years — including by outright banning incentivized reviews, by way of multiple lawsuits, fines, and through suspensions of seller accounts. But there are still services out there offering to boost a product’s Amazon reviews through less-than-official tactics. And there are products on Amazon that continue to have suspiciously positive reviews, ranging from weight loss pills to Bluetooth headphones.

Flooding those products with legit reviews from real customers could bring about a more accurate rating, even if Amazon isn’t able to fully flush the scammers from its review community.

The new ratings test is showing both online and in the mobile app worldwide. Not everyone will see the feature at this time as some customers will be in a control group.

Amazon confirmed the new feature is an experiment, not a public launch.

“We are testing a feature that allows customers to leave feedback easily while also helping shoppers get authentic customer ratings on products from a broader set of shoppers,” an Amazon spokesperson said.

 

Walmart Grocery is expanding its $98 per year ‘Delivery Unlimited’ subscription across the U.S.

Walmart is expanding its brand-new “Delivery Unlimited” grocery delivery membership program to more stores across the U.S., with plans to reach over 50% of the country by year-end. The new program allows regular grocery delivery customers to pay either an annual fee of $98 or $12.95 on a monthly basis instead of paying the usual $9.99 per delivery fee. These options make Walmart Grocery delivery more affordable for those who order at least twice a month or more.

The program also gives Walmart a better way to compete with rival grocery delivery services including Amazon Prime Now/Whole Foods, Instacart, and Shipt, all of which offer subscription memberships.

Shipt currently charges $99 annually, and Target recently announced a way for Shipt shoppers to pay a per-order fee of $9.99 for the first time, by way of a Shipt integration on Target.com. Instacart, meanwhile, cut its annual fee to $99 in November. Prime Now is the most expensive option at $119 per year, but includes all the perks of Amazon Prime’s broader membership program.

In June, TechCrunch broke the news that Walmart’s Grocery Delivery Unlimited program was being trialed in Houston, Miami, Salt Lake City, and Tampa.

Those customers responded favorably, which is why the retailer decided to roll out the program to more U.S. markets.

Initially, that includes all 200 metro areas where Walmart Grocery Delivery is available today. By this fall, it will reach 1,400 stores. And by year-end, it will reach 1,600+ — or more than half the U.S.

The program doesn’t offer any other perks, beyond the savings for Walmart Grocery’s regular shoppers. However, it does have the advantage of locking customers into Walmart Grocery and increasing their return rates and loyalty.

Walmart’s Grocery business grown steadily over the years, and has become a favored alternative to higher-priced services like Instacart where the individual products are marked up as a means of generating revenue. Walmart, on the other hand, charges the same online as it does in stores — the only added cost is the delivery fee and tip. (Pickup is free).

Today, Walmart Grocery Pickup is offered at nearly 3,000 stores and Walmart employs more than 45,000 personal shoppers to fill its online grocery orders. Walmart Grocery Delivery, as noted, is on track for over 1,600 stores this year.

Unlike some grocery delivery businesses, Walmart doesn’t operate its own network of delivery professionals or independent contractors. Instead, Walmart partners with delivery providers across the U.S., including Point Pickup, Skipcart, AxleHire, Roadie, Postmates, and DoorDash. It has also tried, then ended, relationships with DelivUber, and Lyft.

“We’ve been investing in our online grocery business by quickly expanding our Grocery Pickup and Delivery
services. Delivery Unlimited is the next step in that journey,” said Tom Ward, senior vice president, Digital
Operations, Walmart U.S., in a statement about the launch. “By pairing our size and scale and these services we’re making Walmart the easiest place to shop. Combine that with the value we can provide, our customers can’t lose,” he said.

Last month, Walmart reported its 20th consecutive quarter of sales gains in the U.S., with $130.38 million in revenue, earnings per share of $1.27, and net income to $3.61 billion, beating expectations. It said at the time that e-commerce sales had grown 37% in the quarter, in large part because of the rollout of next-day delivery and same-day grocery delivery.

Delivery Unlimited will not replace the pay-per delivery fee — that will remain an option for those who don’t want to subscribe. Customers will be able to see if the service is available in the market by visiting the Walmart Grocery website.

 

Google Express to close in a few weeks, will become part of Google Shopping

Google’s failed online shopping service Google Express is closing in a few weeks, as its features will be merged into a revamped version of Google Shopping, Google says in an email sent to its customers this week. The company had already announced its plans to shutter the Google Express brand, as part of a wider redesign of how it approached online shopping. This included new advertising options for brands and online sellers, as well as a universal shopping cart across its platform of services, like Search, Shopping, Images, and even YouTube.

While Google is characterizing Google Express’s closure as an “integration,” it’s really more of a sunsetting of a failed product and brand.

Google Express was Google’s high-profile attempt to compete with Amazon for online shopping clicks and ad dollars buy creating a virtual mall on the web filled with top retailers’ products. Because Google is not a retailer itself, it did what it knows best — it organized information. At Google Express, you could find products from thousands of retailers — including big names like Walmart, Target, Walgreens, Best Buy, and others. And you could shop through a dedicated online storefront on the web, a Google Express mobile app, or even Google Assistant.

In the latter case, Google Express partnered with retailers like Walmart and Target for deep integrations for voice-enabled shopping. As direct competitors with Amazon, these retailers didn’t want to offer third-party skills for Echo users or others on Amazon’s Alexa platform. Google represented a safer third-party platform for their experiments with voice commands and personalized shopping.

But even several years after launch, Google Express had failed to offer any real threat to Amazon. Its retail partners, meanwhile, were building out their own fulfillment businesses for their customers’ online orders — like Walmart Grocery’s curbside pickup and delivery, for example, or Target’s Shipt, Drive Up, and Restock.

Not too much later, Target and Walmart were pulling out of Google Express.

Google has tried to downplay the news of Google Express’s demise by including it as just another part to the larger Google Shopping revamp. After all, it’s not a shutdown, the company implied. Its features were simply becoming a part of Google Shopping! Nothing to see here! Just a rebrand!

But clearly, Google Express had been unable to establish itself in consumers’ minds as its own dedicated shopping destination. If customers wanted an online mall, they already had one with either Amazon or Walmart and their vast third-party marketplaces where you could find just about anything you’d need. Nor had Google innovated (or acquired) across key areas like warehousing or logistics, while others like Amazon, Target and Walmart had been spending billions.

With Google Shopping, Google goes back to its search engine roots. It aims to simply capture consumers’ clicks, ad dollars and now conversions no matter where they are on Google’s sites — whether that’s shopping from Merch shelves under YouTube videos, browsing photos in a Pinterest-y manner on Google Images, or through more traditional Google searches for products where ads become shoppable, and shopping carts follow you around Google’s part of the web.

In an email to Google Express shoppers that was sent this week, Google says Google Express will be integrated with Shopping in a few weeks’ time.

The redesigned Google Shopping will then be available across the web and through apps for iOS and Android later this month. At that point, the Google Express apps will automatically update to become Google Shopping, if you already had them installed.

The full email about Google Express’ closure is below:

google express shutdown

 

Target’s personalized loyalty program launches nationwide next month

Target today announced its new, data-driven loyalty program, Target Circle, will launch nationwide on October, 6th, following a year and a half of beta testing in select markets. The program combines a variety of features including 1% back on purchases, birthday rewards, and personalized offers and savings designed to make the program more attractive to consumers.

It also includes a way for customers to vote on Target’s community giving initiatives, which helps directs Target’s giving to around 800 nonprofits in the U.S.

Voting

The new program is designed to lure in customers who have yet to adopt Target’s store card, REDcard. While REDcard penetration today is around 23%, that number has remained fairly consistent over time — in fact, it’s down about one percentage point from a year ago.

With Target Circle, however, the retailer has another means of generating loyalty and establishing a connection with its customers on a more individualized basis.

A big part of that is the personalized aspect of the Target Circle program. In addition to the “birthday perks” (an easy way to grab some demographic data), customers will also get special discounts on the categories they “shop most often” — meaning, Target will be tapping into its treasure trove of customer purchase history to make recommendations from both in-store and online purchases along with other signals.

“As guests shop, Target leverages information about their shopping behaviors and purchases to share relevant offers that create an even more personalized, seamless shopping experience,” a company spokesperson explained, when asked for details about the data being used. “For example, a guest who frequently shops Target for baby products may receive a special offer on their next purchase of baby items.”

TargetCircle NonBeta 19 Brand RGB Logo Red

According to a recent retail study from Avionos, 78% of consumers are more likely to purchase from retailers that better personalize their experiences and 63% are more open to sharing personal information if retailers can better anticipate needs.

And as some may recall, Target is already scary good at personalization.

In one notable case, the retailer figured out a teen girl was pregnant before her father did, and sent her coupons for baby items. The dad, understandably, was angry — until he found out that Target was right.

That story was a high-profile example of the data collection and analysis big retailers are doing all the time, though. Target Circle simply formalizes this into an opt-in program instead of an opt-out experience.

As part of the changes, Target’s Cartwheel savings are rolling into Target Circle where they’ll be rebranded as Target Circle offers. 

TargetCircle inApp

Circle members will also get early access to special sales throughout the year — that is, the events people line up for, like they did for the Lilly Pulitzer fashion line or more recently, the quickly sold out Vineyard Vines collection.

Target says, in time, it will come up with “even more personalized, relevant ways” to make shopping easier for its customers.

The new program is meant to complement the REDcard, which will increase the cashback to 5% when used. But REDcard holders can still join Circle to take advantage of the other perks.

WalletRedeeming

“Our guests are at the center of everything we do, and we’re always looking for ways to create even easier, more rewarding shopping experiences that give them another reason to choose Target,” said Rick Gomez, Target executive vice president, and chief marketing and digital officer, in a statement. “We worked directly with guests to develop Target Circle, and the program includes the benefits and perks they told us were most important to them, from earning on every trip to having the opportunity to help Target make a positive impact in their local communities,” he said.

The loyalty program had been in testing in Dallas-Ft. Worth, Charlotte, Denver, Indianapolis, Kansas City and Phoenix over the past 18 months.

Though not having Amazon’s scale, Target has done well at quickly innovating to keep up with today’s pace of e-commerce. In short order, it has made over its stores to make more room for order pickups and online grocery, and has launched and expanded new services like Target Restock (next-day), Shipt (same day delivery) and Drive Up (same day pickup). The changes have been paying off with Target beating on its latest earnings with $18.42 billion in revenue and profits of $938 million.

 

Target’s personalized loyalty program launches nationwide next month

Target today announced its new, data-driven loyalty program, Target Circle, will launch nationwide on October, 6th, following a year and a half of beta testing in select markets. The program combines a variety of features including 1% back on purchases, birthday rewards, and personalized offers and savings designed to make the program more attractive to consumers.

It also includes a way for customers to vote on Target’s community giving initiatives, which helps directs Target’s giving to around 800 nonprofits in the U.S.

Voting

The new program is designed to lure in customers who have yet to adopt Target’s store card, REDcard. While REDcard penetration today is around 23%, that number has remained fairly consistent over time — in fact, it’s down about one percentage point from a year ago.

With Target Circle, however, the retailer has another means of generating loyalty and establishing a connection with its customers on a more individualized basis.

A big part of that is the personalized aspect of the Target Circle program. In addition to the “birthday perks” (an easy way to grab some demographic data), customers will also get special discounts on the categories they “shop most often” — meaning, Target will be tapping into its treasure trove of customer purchase history to make recommendations from both in-store and online purchases along with other signals.

“As guests shop, Target leverages information about their shopping behaviors and purchases to share relevant offers that create an even more personalized, seamless shopping experience,” a company spokesperson explained, when asked for details about the data being used. “For example, a guest who frequently shops Target for baby products may receive a special offer on their next purchase of baby items.”

TargetCircle NonBeta 19 Brand RGB Logo Red

According to a recent retail study from Avionos, 78% of consumers are more likely to purchase from retailers that better personalize their experiences and 63% are more open to sharing personal information if retailers can better anticipate needs.

And as some may recall, Target is already scary good at personalization.

In one notable case, the retailer figured out a teen girl was pregnant before her father did, and sent her coupons for baby items. The dad, understandably, was angry — until he found out that Target was right.

That story was a high-profile example of the data collection and analysis big retailers are doing all the time, though. Target Circle simply formalizes this into an opt-in program instead of an opt-out experience.

As part of the changes, Target’s Cartwheel savings are rolling into Target Circle where they’ll be rebranded as Target Circle offers. 

TargetCircle inApp

Circle members will also get early access to special sales throughout the year — that is, the events people line up for, like they did for the Lilly Pulitzer fashion line or more recently, the quickly sold out Vineyard Vines collection.

Target says, in time, it will come up with “even more personalized, relevant ways” to make shopping easier for its customers.

The new program is meant to complement the REDcard, which will increase the cashback to 5% when used. But REDcard holders can still join Circle to take advantage of the other perks.

WalletRedeeming

“Our guests are at the center of everything we do, and we’re always looking for ways to create even easier, more rewarding shopping experiences that give them another reason to choose Target,” said Rick Gomez, Target executive vice president, and chief marketing and digital officer, in a statement. “We worked directly with guests to develop Target Circle, and the program includes the benefits and perks they told us were most important to them, from earning on every trip to having the opportunity to help Target make a positive impact in their local communities,” he said.

The loyalty program had been in testing in Dallas-Ft. Worth, Charlotte, Denver, Indianapolis, Kansas City and Phoenix over the past 18 months.

Though not having Amazon’s scale, Target has done well at quickly innovating to keep up with today’s pace of e-commerce. In short order, it has made over its stores to make more room for order pickups and online grocery, and has launched and expanded new services like Target Restock (next-day), Shipt (same day delivery) and Drive Up (same day pickup). The changes have been paying off with Target beating on its latest earnings with $18.42 billion in revenue and profits of $938 million.