Target has unveiled its new paid membership program, Target Circle 360, during its investor event. The program, set to launch on April 7, is designed to compete with industry giants like Amazon and Walmart. Target Circle 360 offers a range of benefits, including unlimited free same-day delivery for orders over $35, two-day shipping, and exclusive partnerships and product offerings. Notably, the same-day delivery service is powered by Target’s acquisition, Shipt, which was obtained in 2017.
Key Takeaway
Target is set to launch its paid membership program, Target Circle 360, offering benefits such as free same-day delivery and exclusive deals to compete with Amazon Prime and Walmart+.
Target Circle 360: A Revamped Loyalty Program
The new subscription tier is an enhanced version of Target’s existing free loyalty program, Target Circle, which has been in place since 2019. Target aims to personalize the experience for members by providing automatic discounts and personalized deals. Additionally, the company is rebranding its Target RedCard credit and debit cards to Target Circle, offering customers an additional 5% off purchases.
Pricing and Competition
Target is offering a promotional rate of $49 per year for the new subscription until May 18, after which it will cost $99 annually. However, customers with a Target Circle credit card can still avail of the $49 rate. This move comes as Target looks to catch up with its competitors, Amazon and Walmart, who have already established successful paid membership programs. Despite Target’s recent decline in sales, the company is optimistic that the new program will generate additional revenue and drive sales growth.