Kmart will cash in your Toys 'R' Us gift cards
Kmart wants to cash in on the retail woes of Toys “R” Us, announcing on Tuesday two new rewards programs that cater to the bankrupt toy store’s customers.
Kmart, a big box department store chain fully owned by Sears, will allow customers to cash in Toys “R” Us and Babies “R” Us gift cards at store locations across the U.S. in exchange for its “FREECASH” reward points. It is offering $10 in points in exchange for gift cards, to be put toward any in-store purchase of $10 or more. Kmart will also offer $5 in points toward the in-store purchase of any toy worth $5 or more – an incentive aimed at attracting more consumers into its children’s department.
"Kmart has long been a family shopping destination for expecting and current parents," Leena Munjal, chief digital officer for Sears Holdings Corporation, said in a press release Tuesday. "We're adding more excitement to shopping and giving more savings back to our members by offering incentives to shop easily and conveniently for popular children's items.”
The retailer said it does not matter whether the Toys “R” Us or Babies “R” Us gift cards have expired or how much value is left on them, they can still be cashed in at Kmart locations.
Kmart is also offering a limited-time promotion on diapers and baby wipes purchases, through June 2.
Toys “R” Us filed for bankruptcy last September, weighed down by debt and hoping to restructure its business for a more profitable future amid burgeoning competition from online rivals, like Amazon. In March, the retailer announced a plan to liquidate its entire U.S. business.
A hearing is scheduled on Tuesday as Toys “R” Us seeks approval to sell its Canadian business to Toronto-based Fairfax Financial Holdings.