Target is expanding its Target Circle program by introducing a same-day delivery subscription program next April.
According to the company’s statement, the program has been around since 2019 and has “helped over 100 million Target Circle members save millions of dollars every year” via deals and rewards. Starting on April 7, customers can choose from three new membership tiers, each with their own unique benefits.
Cara Sylvester, Target’s executive vice president and chief guest experience officer, shared in the statement, “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”
What are the new memberships?
Here’s a list of the three memberships debuting next month, per the company’s statement:
Target Circle
As a free-to-join option, Target Circle members can get automatic deals at checkout, personalized discounts and exclusive partner perks, including free trials.
Target Circle Card
Previously the Target RedCard, the Target Circle credit card offers members an extra 5% off of every day purchases, an extra 30 days for no-rush returns, free two-day shipping from Target’s website and a reduced $49 price for a Target Circle 360 membership. Sign up is initially free, per USA Today.
Target Circle 360
Costing only $49 per year until May 18, Target Circle 360 members can get free same-day delivery on orders over $35 with no delivery fees. In addition, members can get all benefits from the basic Circle membership and the benefit of no-rush returns held by credit card members.
According to Axios, this membership will allow customers access to rewards and deals “that they previously had to scan as they shopped.”
Reasons why Target is offering new memberships
Axios claims that the new initiative is to compete with Amazon and Walmart and offer a cheaper service among stagnant sales from last year.
For example, Amazon’s delivery service Prime holds over 200 million members and offers them quick shipping, free returns and access to movies and shows through the company’s streaming service — despite it being a $139 a year subscription, Los Angeles Times reports. In addition, Walmart+ — the retail chain’s subscription service — costs $97 a year but offers members free shipping, fuel savings and access to Paramount’s streaming service.
Both services have been profitable for their respective companies, as Amazon claimed to make $170 billion in total revenue and Walmart+ members spend more on products than its non-members, per TechCrunch.
ABC News added that Target invested $100 million in 2023 to enhance its e-commerce business, including plans to add a minimum of 15 more warehouses, or sortation centers, by 2026.
Target CEO Brian Cornell said during a recent earnings call, “Continued innovation and better integration with our target ecosystem means we’re ready to expand same-day delivery for our guests while also building on our next-day capabilities,” ABC News reports.