Thread: Target and Walmart not counted as dept stores

I have the AMEX blue cash rewards preferred which give 6% groceries, 3% gas, 3% dept stores, and 1% everything else. (very popular card in this forum I noticed)

I was planning on getting 3% rewards at target, where my wife spends thousands of dollars a year. On my first statement I noticed it was not classified as a dept store.

Thinking it was a mistake I called AMEX and they nicely said they classified it as a wholesale store and there is nothing I can do about it. Although I don't shop at Walmart she advised that it is also considered a wholesale store, so she warned me to not be surprised if I see that on my bill later.

Technically now that all the Target's near my house carry groceries we SHOULD be getting 6% back! I have told my wife to NEVER buy groceries at target so we don't lose our 6% back. Previously whenever we went to Target we would also buy some groceries there just for the convenience.

I think Target may be very disappointed to know we have heavily curbed our spending there since I found this out.

The bonus applies to department stores because they probably pay higher merchant fees. Target and Walmart are discount stores. They have a lower cost structure, slimmer margins, and probably pay lower merchant fees because of their higher volume.

Just because your Target sells groceries does not make it a grocery store. With Walmart some of their stores are coded as grocery stores while others are discount stores.

Don't be penny wise and pound foolish. Walmart and Target likely sell groceries for 15-20% less than a grocery store. So you are going to pay 15% more just to earn 6% cash back? That's kind of silly don't you think?

we also shop a lot at target and we have the target red card because it gets us 5% instantly off. it might not be the 6% of the amex blue cash preferred, but it's still 5% off all purchases.

I think that's awesome. Makes me feel layered. Like some sort of epic lasagna

Walmart are not grocery stores any where in the US. even if theres a walmart that's 50% items and 50% grocerys they are still a discount
store.
grocerys would be like walbaums, A&p , pathmark , shoprite,king kullen ect .