Target Corp., the mass merchandiser with about 1,750 stores nationwide, for months has been shortchanging its customers who use certain manufacturers' coupons by crediting them for a fraction of their face value. And they've been aware of the problem since August, the Minneapolis-based retailer admits.
Target is calling it a computer glitch. Avid coupon users are calling it an outrage.
"If I am not going to get the full value of my coupons, I will redeem them elsewhere," said Carrie Rocha of Maple Grove. Rocha, creator of the couponing site pocketyourdollars.com, went to Target on Wednesday and piled her cart full of the 10 frozen entrees required to redeem her $4 coupon. The register took off $2.54 -- the price of one entree -- instead. "I am getting comments on my blog of frustration from shoppers and really kind of a sense that it's probably not worth using coupons at Target," she said.
"I've never heard of this happening at any supermarket," said Stephanie Nelson, founder of CouponMom.com and author of two books on couponing.
A Target spokeswoman said Wednesday she had no information on why the problem was happening or why it hasn't been resolved.
"We are aware that some coupons are not scanning for the full amounts," Target spokeswoman Erika Svingen said. "We are aware of the issue and are diligently working on a fix for that and will implement it as soon as possible."
Coupon use soared during the Great Recession. Some 3.3 billion coupons were redeemed in 2009, a 27 percent increase from the year before, according to coupon research site CouponInfoNow.com.
What may be most disconcerting to many Target shoppers is that the coupon problem has been ongoing since at least midsummer.
'We apologize'
Target has instructed cashiers to check coupons to ensure customers are getting the full value, Svingen said. "We apologize for any inconvenience this has caused our guests," she said. "Anyone who does not receive the full coupon amount at the register can bring their receipt to guest services for a refund of the difference."
Shoppers complained primarily about coupons that require the purchase of multiple items. Multiple-item coupons make up a quarter of all coupons, according to Inmar Inc., which helps retailers and manufacturers manage coupons.
But Rocha is quick to caution that the glitch spans wider than that and low-value coupons have also been affected. The comments section on her latest Target blog entry is peppered with complaints about transactions involving coupons and Target gift card giveaways.
The glitch appears to stem from a common practice among retailers. Stores won't allow a coupon to reduce the price of an item to less than zero. Otherwise, it would have to pay the customer cash for buying the item. Free is the best they will do, which is also Target's stated policy.
In Target's case, the application of that rule seems to be fuzzy. Coupon expert and blogger Jill Cataldo said she's been shortchanged by Target registers eight or nine times in recent months.
It adds up
"I have no vendetta personally against Target, but it's not fair at all," said Cataldo, adding that she doesn't believe the company is cheating customers intentionally. "Many coupon shoppers are savvy and watch the register like a hawk. But a casual coupon user may not realize it until they're home, or not realize it at all."
Rocha suggests shoppers tally up the value of their coupons and mentally subtract them from the subtotal before handing them to the cashier. "If they tell you your total is $43.25 and you know you have about $9 in coupons, you can do the math."
Retailers typically submit for reimbursement the face value of coupons. If applied, in Rocha's example, Target would get $4 from the manufacturer, netting the retailer $1.46 cents.
It quickly adds up over many items over hundreds of customers at Target stores nationwide, Cataldo said.
Target on Wednesday had no comment on what will happen to that money.
Star Tribune staff writer Kara McGuire contributed to this report.
Distributed by McClatchy-Tribune Information Services.
