Target is set to launch a new paid membership program named Target Circle 360 in the coming month, aiming to bolster its revenue and market share amidst consumer spending caution. This initiative will directly rival Amazon’s Prime and Walmart Plus, offering upgraded features to the existing Circle program and Circle credit card.
Members of Target Circle 360 will benefit from complimentary two-day shipping, with the option of delivery to their doorstep or another recipient’s. Additionally, they will enjoy same-day delivery through Target’s delivery service, Shipt, and its retail partners, for orders exceeding $35, with deliveries possible in as little as an hour and no delivery fees.
During Target’s full-year earnings call, Cara Sylvester, the company’s chief guest experience officer, highlighted that members will have access to a wide range of items, including groceries, household essentials, and trending products, without additional fees or markups, along with personalized shopper support.
New members can avail themselves of Target Circle 360 from April 7 to May 18 for an introductory price of $49 for the first year, which will later increase to $99 annually. Target Circle cardholders will have access to the service for $49 annually.
CEO Brian Cornell emphasized that the introduction of the paid membership program is part of Target’s growth strategy, aimed at meeting consumer needs and driving sales, traffic, and market share gains in 2024.
In addition to the paid membership program, Target is enhancing its free Circle rewards program, automating the application of deals at checkout and offering partner perks with Ulta Beauty and Apple, along with personalized bonuses based on shopping behavior.
Furthermore, Target Circle credit cardholders will receive extra benefits, including an additional 5% discount on each trip, free two-day shipping, and an extended 30-day return window.
Despite facing challenges such as persisting inflation and shifting consumer spending patterns, particularly in discretionary categories, Target remains cautious in its outlook for 2024. The company anticipates a decline in same-store sales between 3% and 5% in the first quarter, reflecting the ongoing uncertainties in the market.