Toys 'R' Us Revamps Rewards Card in Push Against Target, Wal-Mart

Toys "R" Us' relaunched credit card from GE Capital has a bunch of new features to drive repeat purchases in its latest play against competitors such as Target Corp. and Wal-Mart Stores Inc., both of which lack such specialized rewards.

The Wayne, N.J.-based toy retailer earlier this year cut a deal to replace JPMorgan Chase & Co. as its issuer with GE Capital Retail Bank, underscoring a trend in which Chase is steadily going after more upscale credit cardholders.

The new private-label credit card and co-branded MasterCard from GE Capital digs deep into deals, catering to consumers that visit often and want to plow their rewards points back into additional purchases.

It also enables credit cardholders to earn four points for every dollar they load onto Toys "R" Us' Very Important Baby program launched earlier this year. That program is designed specifically to drive in-store sales of diapers and other items that are hot commodities at Wal-Mart and with online merchants.

The V.I.B. program enables customers to save 10% savings on baby-care basics, and accumulating up to $200 annually that can be plowed back into in-store purchases.

"The enhancement of our loyalty program, paired with the new "R"Us credit card, is a natural evolution of Rewards"R"Us and aligns with how our customers want to shop and connect with our brand today," Peter Reiner, Toys "R" Us senior vice president of marketing, said in a June 27 press release.

The relaunched credit card program is linked to the company's core Rewards "R" Us loyalty program. This program offers two points for every dollar spent through all Toys "R" Us or Babies "R" Us channels, and one point for every dollar spent on gift cards, electronics and baby-care basics such as diapers.

Credit cardholders earn four points for every dollar spent on all in-store and online purchases and those with the cobranded MasterCard earn one point for purchases elsewhere.