You do realize how much money is made by Target through RED Cards? Not only is it a money-maker, they really build loyalty. Although you may not like driving them, they are an integral part of the company's long-term success.
Target makes money with the debit card because people who use it often buy more thanks to the five percent discount. They sometimes buy things they would normally get at another store because of the discount.
Nope, nope, nope, nope, and nope.
This is believed by people sitting in a boardroom and looking at numbers and reports all day, with little real world retail experience.
The numbers are correct, people with RedCards shop at Target more and spend more. But the reasoning behind it is flawed. The card is not causing them to do that, they were, in all likelihood, already loyal Target shoppers before they signed up for a RedCard. A lifelong Walmart shopper, stopping by to pick up a gallon of milk is not going to sign up for a RedCard.
The card itself does little, if anything, to cause the guest to spend more. 5% is a minuscule amount off. Same for CartWheel in my opinion. A Walmart shopper isn't going to download CartWheel, and all of the sudden become a loyal Target shopper.
Target spending all this money on shit like CartWheel and hustling guests for RedCards, all the while having one register open, constantly in fast service with nobody to help a guest on sales floor is going to kill off the already loyal, Target shoppers.
People shopped at Target because of the friendly service, clean store, available assistance on the sales floor, and short register lines.
EDIT:
One more point I'd like to add. A Walmart shopper stops by to pick up a gallon of milk. Which is more likely to create a loyal customer? Pushing them to sign up for a RedCard to save 5% ?
or..
The customer walks into a clean store, quickly spots someone to ask for help. The associate is friendly, and walks them to the product. The product is neatly organized. The customer then heads up front, where multiple registers are open, with little, if any line. The cashier does not try to convince the already in a rush customer to sign up for anything. The bathrooms were clean and there wasn't a shitload of shopping carts scattered throughout the parking lot.