Target's Circle lets customers vote on where the retailer donates profits

The eighth-largest retailer in the United States is involving its customers in how it donates its profits.

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Target announced its expanding their loyalty rewards program by rolling out Target Circle nationwide on Oct. 6, which allows shoppers to vote on where millions of dollars will be donated. The list includes 800 non-profits.

"We worked directly with guests to develop Target Circle, and the program includes the benefits and perks they told us were most important to them, from earning on every trip to having the opportunity to help Target make a positive impact in their local communities."

- Rick Gomez, executive vice president and chief marketing and digital officer at Target

To date, the retailer says more than two million people, who have made more than 14 million transactions, have enrolled in the program. In addition, those enrolled have already cast votes to donate more than half a million dollars to local nonprofit organizations.

Since being founded in 1946, the Minneapolis-based company says it has given 5 percent of its profits to communities as part of their “longstanding commitment to giving back."

The company tested the new program in six pilot markets — Dallas-Ft. Worth, Charlotte, Denver, Indianapolis, Kansas City and Phoenix — for more than 18 months before announcing its nationwide expansion.

The loyalty program, designed to compliment Target’s existing RedCard credit card, offers benefits to shoppers in an effort to make their shopping experience “more enjoyable.”

No membership fee is required and shoppers will earn 1 percent on every purchase to redeem on future trips, early access to special sales throughout the year as well as personalized deals and perks including a birthday discount.

A spokesperson for Target told FOX Business that guests who are enrolled in Target Circle within the test markets are spending and saving more than guests who are not enrolled in the program.