Target Unveils New Paid Membership Program - What's The Benefit?

Zinger Key Points
  • Target introduces Target Circle 360, a paid membership program.
  • Target's new program offers expedited delivery, exclusive perks, competing with industry rivals.

Target Corp TGT has unveiled its new paid membership initiative, Target Circle 360, aiming to compete with established subscription plans from industry rivals.

The program offers expedited same-day delivery and exclusive perks for members. Launching on April 7 at a promotional rate, the annual fee will rise after May 18, reported Bloomberg.

The move mirrors similar programs by Amazon.com Inc’s AMZN Prime and Walmart Inc’s WMT Walmart+, as per the report.

The company said consumers can apply for a Target Circle Card (previously known as Target RedCard) for an extra 5% off every day, extra time to return items, and free two-day shipping.

Paid memberships generate additional revenue and enhance customer loyalty. Target aims to emulate success seen by Amazon Prime, Walmart+, and Kroger Co’s KR membership programs, as per the report.

Target said it will continue investing in its stores-as-hubs model during the next decade.

Target’s fourth-quarter revenue of $31.92 billion beat the consensus estimate of $31.83 billion. Adjusted EPS of $2.98 came in above the street view of $2.42.

Price Action: TGT shares are trading higher by 12.7% at $169.61 on the last check Tuesday.

Photo via Shutterstock

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