Target Ends Cartwheel Perks And Merges It Into Its Main Target App

By Christine Kern, contributing writer

The pilot rewards program has not earned its keep.

Target has announced that it is ending a pilot rewards program via the Cartwheel app, but promises that something better is in the works for customers, according to CNBC. The pilot ran for approximately a year in five markets, including Denver, Houston, San Diego, St. Louis, and Raleigh-Durham. Existing users have until August 27 to earn points and September 27 to redeem them.

"Creating simple, convenient and fun digital tools for Target guests means listening carefully to guest feedback and regularly making adjustments based on what we hear," Target told CNBC. "That's why we've begun phasing out the pilot Cartwheel Perks program."

The "Cartwheel Perks" pilot awarded customers 10 points for every dollar spent at Target stores, excluding CVS pharmacy purchases and gift cards. Once they earned 5,000 points, shoppers could choose from 25 different rewards ranging in value from $10 to $20, including sunglasses, laundry detergent and athletic apparel.

"We had many learnings about how to engage and reward guests that we plan to leverage in the future," Target said about the pilot. "We look forward to sharing more about exciting changes coming soon to the Cartwheel and Target apps."

Last month the retailer said it's in the process of merging Cartwheel into its main Target mobile application. Target is also making other enhancements to its app, including the addition of store maps and other information and offers to help increase customer engagement and satisfaction.

"We thanks our guests who participated in this pilot program," Target said in a statement. "We had many learnings about how to engage and reward guests that we plan to leverage in the future. We look forward to sharing more about exciting changes coming soon to the Cartwheel and Target apps."