In a concerted effort, some retailers are attempting to win customer loyalty and increase revenues in ways other than price cutting.  A first year business student would tell you that there are many ways to compete and price is often the weakest.  The problem with competing on price is that its the easiest way to compete.  Other ways, like customer experience and much more difficult.  Stores, like Target, are not simply cutting prices, but working through loyalty discounts.  In essence, target is essentially still working on price, but that’s another story.  Target will be offering 5% cash back to their credit and debit card holders.  That’s a significant amount and a nice deal for those users.  Investors could see improvements on the bottom line if these loyalty programs work.