Target Corp. introduces Target Circle 360, a new subscription-based membership program, offering unlimited same-day delivery and exclusive discounts, positioning itself as a strong contender against Amazon Prime and Walmart+.
Target Corporation has announced the launch of Target Circle 360, a subscription-based membership program designed to enhance customer loyalty and compete with established programs like Amazon Prime and Walmart+. The announcement was made during an investor presentation in New York on March 5.
Membership Benefits and Launch Details
Target Circle 360 will offer unlimited free same-day delivery on orders exceeding $35, with delivery times as quick as one hour. Additionally, members will enjoy free two-day shipping on purchases from Target.com. The program is set to debut on April 7 with a promotional annual fee of $49 until May 18, after which the price will increase to $99 for non-Target credit or debit cardholders.
Strategic Positioning
The introduction of Target Circle 360 is a strategic move to capture market share in the competitive retail subscription space. Michael Fiddelke, Target’s COO and interim CFO, expressed confidence in the program’s appeal to consumers, especially with the initial $49 offer. The paid tier is an extension of the existing Target Circle loyalty program, which will continue as a free option. The Target RedCard will be rebranded as the Target Circle Card, offering additional benefits like a 5% discount on purchases.
Enhanced Customer Experience
Target plans to enrich the Target Circle 360 experience with exclusive partnerships and unique experiences. Paid memberships are a lucrative strategy for retailers, as they generate extra revenue and foster deeper customer loyalty. These programs encourage shopping across multiple channels, leading to increased overall spending.
Market Context and Challenges
Despite being a new player in the paid membership field, Target is entering a market with well-established competitors. Amazon Prime, launched in 2005, boasts over 200 million members, while Walmart+ has been building its subscriber base since 2020. Kroger’s membership program, introduced in 2022, has reportedly exceeded expectations. To differentiate itself, Target will need to offer distinctive benefits to overcome potential consumer fatigue with subscription services, as noted by Bloomberg Intelligence analyst Jennifer Bartashus.
