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"We think of Cartwheel as a way of taking what, for many people, had been a process of clipping the paper coupon from a circular and bringing it the store, and integrating that experience into one digital, seamless app on your phone," said Eddie Baeb, a spokesperson for Target.
But now, he said, the idea is to simultaneously appeal to coupon-driven and rewards-motivated shoppers.
Pilot cities were selected based on whether they were a strong or weak market in terms of existing app usage, as well as other factors.
San Diego was chosen, in part, because the region ranks among the top five nationwide for active Cartwheel users.
For now, the Cartwheel app and its associated Perks program are only available to in-store shoppers but the company said it is considering linking online purchases with points as well.