Target to launch membership program to rival Amazon, Walmart

  • Target Circle 360 offers free same-day delivery on some orders, two-day shipping
  • Membership will cost $99 per year, but special offer available through May 18
  • Executive VP: Experience designed to deliver guests more value with ease

(NewsNation) — Target plans to roll out a new subscription feature to help the company better compete with Walmart+ and Amazon Prime and drive same-day delivery sales.

According to the Wall Street Journal, Target’s annual revenue has declined for the first time in seven years.

In response, the company plans to launch Target Circle 360, which comes with a yearly $99 membership fee. Members will get unlimited free same-day delivery for orders over $35 — with some arriving in less than an hour — and free two-day shipping.

It will launch with a special offer for new members for $49 per year from April 7 through May 18. After that, it will cost $99 per year. Target Circle credit card holders can sign up for the lower price anytime.

In addition, members will have access to the Shipt Marketplace, offering same-day delivery from more than 100 retailers. Set to launch April 7, the program provides extended return times beyond the standard policy.

“The new Target Circle experience was designed to flex and grow with our guests to deliver more value and ease — no matter how they choose to shop with us — so every visit feels personal, rewarding and made just for you,” said Cara Sylvester, Target executive vice president and chief guest experience officer.

As for its loyalty programs, Target said it saw a need to make its free Target Circle program easier to use. So, members will see deals applied automatically at checkout so they don’t have to search for or add individual offers.

Target also renamed its Target RedCard credit card program to Target Circle to make it easier for credit card holders to access Target Circle benefits, such as an extra 5% discount instantly on top of the Target Circle deals. It’s also giving credit card holders an extra 30 days to return an item on top of the regular 90-day window.

In comparison, an Amazon Prime membership, launched in 2005, now costs $15 a month or $139 annually and includes free streaming of its Prime Video service, among other perks. Meanwhile, with Walmart’s paid membership program called Walmart+, launched in 2020, members get free shipping for $12.95 per month or $98 per year.


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