US-based retailer Target is taking a step towards capturing a larger share of the online shopping market with the launch of its paid membership programme, Target Circle 360, Bloomberg reported.
This programme directly targets established giants such as Amazon Prime and Walmart+, offering similar benefits to attract consumers.
Scheduled for launch on 7 April 2024, Target Circle 360 boasts several features for its members, including unlimited free same-day delivery for orders exceeding $35 within an hour through Shipt.
Additionally, members will enjoy the convenience of free two-day shipping on purchases made through Target.com.
The programme comes with a yearly membership fee of $49, increasing to $99 after 18 May 2024 for non-cardholders.
However, Target credit and debit cardholders will continue to benefit from the $49 price point.
This launch signifies an expansion of Target's existing free loyalty programme, Target Circle.
The company is also rebranding its Target RedCard credit and debit cards as Target Circle Cards, maintaining the existing 5% discount on purchases for cardholders.
Target's foray into the paid membership landscape aims to achieve two primary objectives.
Firstly, the programme seeks to generate additional revenue through membership fees.
Secondly, it aims to cultivate deeper customer loyalty by incentivising members to spend more across both online and in-store channels through attractive free shipping and faster delivery options.
According to Bloomberg, Target's late entry into the market presents a significant challenge.
To counter 'membership fatigue' and entice consumers to sign up, Target needs to offer unique value propositions that set Target Circle 360 apart from established competitors such as Amazon Prime and Walmart+.
Ultimately, Target Circle 360 represents a strategic move by the retailer to gain a foothold in the burgeoning paid membership market.
The programme's success will hinge on its ability to deliver compelling value and carve out a unique niche within the already crowded marketplace.
Whether Target Circle 360 can successfully compete with established giants remains to be seen, but the programme marks a significant step towards enhancing customer loyalty and driving revenue growth for the retail giant.
