My Personal Finance Journey

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Kmart Rewards

Contributed by mm | November 10, 2004 5:53 PM PST

CardWeb brought out the news that Kmart has launched a new store credit card with reward features. This red card gives you $10 back on your first day's purchase that exceeds $50, plus $10 back every time your purchases add up to $250. This amounts to 4% cashback for frequent Kmart shoppers.

You may say it is no news that a store card is offering a discount to frequent customers, but for Kmart who is in the business with razor-thin profit margins (Kmart as a company has a net profit margin of 2.40% in the last 12 months), 4% cashback is really a hefty reward. In comparison, Wal-Mart credit card does not offer any cash reward for repeated purchases.

No Kmart is within 20 miles of my home, so I didn't have a chance to visit Kmart more than once a year; I go to Costco and Wal-Mart more often. The TrueEarnings card from American Express/Costco gives me 1% cashback and this is as much as I can count on right now.

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