Target set to launch new paid membership program this week

Sun, Apr 7, 2024, 9:15 AM 5 min read

Starting this month, your local Target run could reap even more rewards and savings.

The popular discount retailer will now offer three new membership options for shoppers under its Target Circle loyalty program: a free membership, a retail card option, and a new paid membership, which includes same-day delivery and more perks.

The revamp of its loyalty program launches during Target Circle week, April 7-13, when rewards members will be eligible for up to 40% off select spring items in addition to a one-day-only 10% off Target gift card deal on April 13.

The newly launched offerings come as part of the retailer’s broad focus on delivering a more affordable and cost-effective shopping experience to its customers, a company spokesperson told Yahoo Finance.

“We've prioritized building strong relationships with guests since Target’s inception, and our reimagining of Target Circle continues that commitment,” Cara Sylvester, executive vice president and chief guest experience officer at Target, said.

It also positions Target (TGT) to go head-to-head with Amazon Prime and Walmart+ in the home delivery market.

A Target store stands in Manhattan in New York City. (Credit: Spencer Platt, Getty Images) — A Target store in Manhattan. (Credit: Spencer Platt, Getty Images) · Spencer Platt via Getty Images

New Target Circle 360 subscription service

Launching April 7, Target 360 is a new paid loyalty program, priced at $99 for an annual subscription, with a limited-time deal of $49 through May 18.

A subscription includes free same-day delivery, advertised to be received “in as little as an hour” with no fees. Members will also have free two-day shipping via Target’s delivery service Shipt. Additionally, Target Circle 360 members will have access to Shipt’s catalog of over 100 retail partners — like Sephora, Ulta Beauty, and Petco for fast shipping.

Members of the new Target Circle 360 will also have access to “no-rush returns,” which means they have an extra 30 days to return their purchased items. Target Circle Card members will also have access to extended return benefits.

Target’s launch of its new paid membership service comes nearly two decades after Amazon (AMZN) announced Amazon Prime in 2005. The popular membership service is known for its free and unlimited same-day or two-day shipping services across the US.

Today, Amazon’s offerings under the Prime membership also include deals from Amazon Fresh, where subscribers from certain cities can shop for groceries or daily products. Customers can also use their Prime membership at checkout when shopping at their local Whole Foods to receive special discounts.

Prime members often look forward to Prime Day, when they can benefit from additional discounts on Amazon products like the Kindle or Echo, as well as other major appliances and everyday goods.

An Amazon Prime membership costs $14.99 monthly or $139 annually.

More recently, Walmart (WMT) unveiled Walmart+, a subscription and membership plan priced at $12.95 a month, or $98 a year.

Like its competitors, Walmart+ benefits include unlimited free shipping and free delivery from your store. It also includes savings on fuel, video streaming with Paramount+, and early access to promotions and events.

What else is new under the Target Circle umbrella

Customers shop at a Target store in Chicago, Illinois. (Credit: Scott Olson, Getty Images) — Customers shop at a Target store in Chicago. (Credit: Scott Olson, Getty Images) · Scott Olson via Getty Images

Target Circle’s free membership

Target Circle is the store’s free-to-join loyalty membership, which lets you earn 1% cash back on purchases at Target and up to 5% if you have a Target credit card. While this membership will remain relatively the same, as part of the update, consumers will get more personalized offers and discounts on in-store and online items that are not available to non-members.

Additionally, Target Circle members can get 5% off a single purchase on their birthday.

Its main perk? Members receive automatic discounts at checkout, so you don’t have to scout for deals or savings on your own.

Read more: Best cash-back credit cards

Target Circle Card, formerly known as Target RedCard

As part of its broad upgrade, Target Circle members who have a Target Circle Card (previously known as Target RedCard) can get up to 5% off select purchases — on top of existing store deals.

But there are some exceptions. According to Target, members won’t be able to get a 5% additional discount on prescriptions, CVS pharmacy products, or paid gift cards, for example.

Customers who have the Target Circle Card will also benefit from an extra 30 days to return items, free 2-day shipping when purchasing online, and a discounted price on a Target Circle 360 membership.