PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Target Earnings Under Pressure, But REDcard Debit Base Growing

Mercator Advisory Group by Mercator Advisory Group
August 22, 2013
in Analysts Coverage
0

Blank black credit card with gold EMV strip, isolated on white background.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Target Corp. announced its second quarter earnings yesterday, and similar to the results reported Wal-Mart the previous week, the retail sector remains soft due to contractions in consumer spend overall. However, the transcript of Target’s earnings call reveals the following:

Year-over-year penetration of sales in our proprietary debit and credit cards were nearly 600 basis points in the second quarter, and for the first time in our history, debit penetration moved beyond credit. The debit card has proven to be the engine that has propelled REDcard rewards beyond our initial stretch goals.

Looking at Target’s 2012 annual report, it reports household essentials (which includes pharmacy, and food and pet supplies represent 45% of their total sales. In 2012, total reported sales were just over $71.9 billion, which means that about $32.35 billion were sales of everyday items. We don’t know how much of that money was actually spent using a REDcard, but its penetration rate is somewhere between 17%-20% and growing. This data takes on an interesting new aspect, if one considers it in light of the Merchant Customer Exchange initiative, since we would assume Target would use the mobile platform to shift even more transaction activity away from network-branded cards to their proprietary payment type.

Click here to read more from CNBC.

Tags: Debit
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    January 31, 2023
    credit card tumbling

    How to Detect, and Prevent, Credit Card Tumbling

    January 30, 2023
    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    January 27, 2023
    faster payments

    Faster Payments Are Set to Revolutionize Modern Digital Payments

    January 26, 2023
    How AI can Help Manage Payments Risk in 2023

    How AI can Help Manage Payments Risk in 2023

    January 25, 2023
    cross-border payments

    How to Implement Effective and Innovative Cross-Border Payment Strategies

    January 24, 2023
    credit card experiences, digital payments, b2b payments

    Will Consumer-to-Business Payment Trends Drive B2B Global Growth in 2023?

    January 23, 2023
    Faster Payments Faster Identity Verification, connected car, payments

    2023 Predictions: Authentication, Digital Identity, and In-Car Payments

    January 20, 2023

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the U.S. Bank report - Real-time payments