I went back today and asked a rep about repackaged games. He explained that these are games Target wants to move at a reduced price, and "repackage" is a way to avoid calling them clearance. They are still in original packaging. Personally I think calling them clearance makes more sense, but whatever. These are not returns reshrinked. Target doesn't even accept returns of opened games.
My store has an endcap of repackaged PS4 games that I posted yesterday, plus another endcap with XONE games. The prices are currently 30% off. Since these are not considered clearance, I'm not sure if the discount will increase over time the same way, but it seems reasonable that they will.
They put Yakuza 6 as normal price $19.99 even though it is $39.99 everywhere, including Target's website. I picked it up for $14 (65% off compared to other stores).
Strange...a Brickseek search for "Yakuza 6" doesn't show any list of items...says the lowest price at Target is $31.49...only gives you a link to its listings on Target and other sites.