Target is set to launch its own shopping subscription service. Its main competitor already launched its own Walmart+ service in 2022, while both have been in a fierce fight against Amazon’s Prime.
The service, called Circle 360, will give same-day free shipping to members for orders over $35. Fox Business reports:
With Target 360, members will get free two-day shipping and the ability to deliver it to their door, or someone else’s. They will also get same-day delivery from Target’s delivery service, Shipt, and its retail partners, for orders over $35. They will be delivered in as little as an hour with no delivery fees, according to the company.
Anything from “from groceries to household essentials to the newest must-have item with no additional fees, no markups, and support from a preferred shopper,” said Cara Sylvester, Target’s chief guest experience officer, during the company’s full-year earnings call.
Both Amazon Prime and Walmart+ also offer a streaming service with their membership. Amazon Prime has its own in-house service, while Walmart bundles with Paramount+. Target will likely have to team up with a streaming service to remain competitive. Netflix, Max, Peacock, and Disney+/Hulu are all potential options, though by no means guaranteed. USA Today says:
Free two-day shipping and delivery to your door are also included in the service, along with all the rewards afforded in the basic Circle program.
Target Circle 360 runs $99 per year, though an intro offer at the time of launch will let new members pay $49 from April 7 to March 18. Owners of Target Circle Cards can also receive a discounted price of $49 per year.
Target’s key demographic is those still wanting value, though a slightly more stylish offering than Walmart. At a time of economic downturn, Americans are cutting back on discretionary spending, which makes up a large portion of Target’s sales. This membership could change this course, but it will have to appear competitive to be successful.
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