Target, one of the largest retail chains in the United States, has announced the launch of its new paid membership program, Target Circle 360. This move comes as the company aims to expand its revenue streams and compete with rivals Amazon and Walmart.
Target Circle 360 offers a range of benefits to its members, including unlimited free same-day delivery for orders over $35, with delivery times as short as one hour and no additional fees. Members will also enjoy free two-day shipping and various other perks. The company is considering additional benefits to enhance the membership offer and attract more customers.
The paid membership tier will be available starting in early April, initially costing $49 per year. However, this price will increase to $99 per year after the promotional period ends on May 18. Customers who hold a Target Circle credit card will have the advantage of paying the lower price of $49 per year beyond that.
In addition to the paid membership program, Target will also be revamping its free Target Circle loyalty program, which was first introduced in 2019. The updated program aims to provide a more personalized experience for members by automatically applying discounts at checkout, eliminating the need to search for deals on the app.
Furthermore, Target will rebrand its credit card program under the name Circle card. The new card will offer an extra 5% off on customers’ purchases, free two-day shipping on eligible items, and extended return periods. Previously known as Target RedCard, this rebranding is part of Target’s efforts to streamline and improve its offerings.
Target’s decision to introduce a paid membership program follows a trend set by other retailers such as Amazon and Walmart. Membership fees have proven to be a lucrative source of revenue and have helped drive sales for these companies. By implementing a similar strategy, Target hopes to boost its weaker sales and attract more loyal customers.
While it remains uncertain how many customers will sign up for the paid membership tier, Target’s free Target Circle program already boasts over 100 million members. This large membership base indicates the potential for a successful transition into a paid membership model.
Both Amazon and Walmart have seen significant success with their respective membership programs. Amazon Prime, launched in 2005, offers benefits such as free two-day delivery and access to streaming services. It currently has more than 200 million members globally. Walmart+ was introduced in 2020 and provides perks like free shipping and grocery deliveries for a yearly or monthly fee.
Target aims to replicate the success of these programs by adopting a similar approach. Walmart CEO Doug McMillon revealed that Walmart+ members spend nearly twice as much as non-members and make more purchases throughout the year. This data demonstrates the potential for increased revenue that Target hopes to achieve through its membership program.
As Target expands its revenue streams with the introduction of Target Circle 360, it seeks to capitalize on the growing trend of membership programs within the retail industry. By offering convenient and valuable benefits to its members, Target aims to strengthen its customer base and drive sales. With its competitive pricing and attractive perks, Target is positioning itself as a formidable player in the paid membership arena.
In conclusion, Target’s new paid membership program, Target Circle 360, is set to launch in early April, offering members benefits such as free same-day delivery and two-day shipping. The program aims to boost the company’s revenue streams and compete with rivals Amazon and Walmart. By following in the footsteps of successful membership programs, Target hopes to attract more loyal customers and drive sales. With its strategic approach and attractive perks, Target is poised to make a significant impact in the paid membership market.
