Target, looking for ways to reverse a sales malaise, is getting into Amazon territory: the paid membership game. The Minneapolis discounter said Tuesday the new paid program, called Target Circle 360, will offer unlimited free same-day delivery in as little as an hour for orders over $35 and free two-day shipping, the AP reports. 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. But Target Circle credit card holders can sign up for the lower price anytime. In comparison, an Amazon Prime membership, launched in 2005, now costs $15 a month or $139 annually and includes free streaming of its Amazon Video, among other perks. Meanwhile, with Walmart's paid membership program called Walmart Plus, launched in 2020, members get free shipping for $12.95 per month or $98 per year.
The discounter said its current Target Circle program has more than 100 million members who shop and spend more than five times more than non-members. Target also said it saw a need to make the free loyalty program easier to use, so members will now 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 like an extra 5% discount instantly on top of the Target Circle deals. It's also allowing credit card holders to get an extra 30 days to return an item on top of the regular 90-day window. Target told investors it was considering a number of perks to add to the paid membership program, but it was going to listen to what shoppers want.
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