Following in the footsteps of Amazon Prime and Walmart+, Target announced the launching of Target Circle 360, a new paid membership program described by the company as “a new paid membership that includes unlimited free same-day delivery for orders over $35 in as little as an hour with no delivery fees or markups, free two-day shipping, access to preferred shoppers who can personalize their experience, and access to Shipt Marketplace, which offers same-day delivery from more than 100 retailers nationwide.”
This is one of three membership options that Target is offering. Here’s how Target is positioning the initiative:
“On April 7, Target will reintroduce its loyalty membership program, Target Circle, with a suite of memberships that build on each other, including the continuation of a free-to-join membership, retail payment card options and a new paid membership. Target Circle is already one of retail’s largest loyalty programs with more than 100 million members saving millions of dollars each year. The changes reflect Target Circle members’ desire for an even easier and more personalized shopping and saving experience.”
In addition to Target Circle 360, membership options include:
• “Target Circle – Target will continue offering its popular free-to-join membership with personalized deals, member-exclusive sales throughout the year and additional perks and savings. Based on guest feedback, deals will now be applied automatically at checkout — no more having to search for or add individual offers — so members are confident they’re getting the best value every time they shop. They also can earn Target Circle Rewards and take advantage of personalized deals through Target Circle Bonuses.”
• “Target Circle Card – To save even more, consumers can apply for a Target Circle Card1 (previously known as Target RedCard) for an extra 5%2 off every day, as well as extra time to return items2 and free two-day shipping3 on hundreds of thousands of items on Target.com.”
CNBC points out that “Target is a relatively late entrant in the paid membership arena. Amazon.com Inc. launched the $139-a-year Prime in 2005 and has more than 200 million members, while Walmart Inc. started its $98-a-year equivalent in 2020 and has gained an undisclosed number of subscribers with ramped-up marketing. Kroger Co., which began its membership program in 2022, has said it is performing better than expected. Its top tier costs $99 a year.
“Retailers have been offering perks such as free streaming and fuel savings to lure more people to sign up for memberships. Some are offering various price tiers, though it remains to be seen how many programs people will pay for.”
KC’s View:
I think it is a legitimate question to ask whether Target indeed is a day late and a dollar short.
This does appear to be a me-too entrant in the membership wars, and it remains to be seen if Target can offer enough advantages to distinguish it.
The post Target Primes New Paid Membership Program appeared first on MNB.
View Original Article
