What: Target announces the launch of Target Circle 360, a USD 99/year membership program to rival Amazon Prime and Walmart+.

Why it is important: This initiative marks Target's strategic move to enhance its competitive edge in the retail market by offering a premium loyalty program. By providing similar benefits as its competitors, such as unlimited free same-day delivery and free two-day shipping, Target aims to increase traffic, transactions, and engagement, reinforcing its position in the e-commerce and brick-and-mortar retail landscape.

Target is set to debut its paid membership program, Target Circle 360, on April 7, enhancing its existing loyalty offerings with a tier that includes unlimited free same-day delivery for orders over USD 35 and other perks. With an annual fee of USD 99, Target Circle 360 positions the retailer alongside Amazon Prime and Walmart+ in the competitive loyalty program space. The introduction of this program follows Target's report of a 1.7% increase in Q4 revenue year over year, despite a slight dip in comparable sales. Target Circle, introduced in 2019, already boasts over 100 million members, and the new paid tier aims to further personalize shopping experiences and drive customer engagement. In addition to its loyalty program expansion, Target is focusing on growing its store footprint, with plans to open more than 300 new stores in the next decade, emphasizing the continued relevance of in-store shopping. This move is part of Target's broader strategy to attract more customers and enhance the shopping experience, leveraging trends in digital and in-store retail.

Target to launch paid membership program to rival Amazon Prime, Walmart+