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Aiming to launch its own version of Amazon Prime starting at $49 per year

During Target’s investor event on Tuesday, retail giant Target said announced We have started a paid membership program. target circle 360, on April 7 to compete with rivals Amazon and Walmart. The subscription tier includes benefits such as unlimited free same-day shipping and free two-day shipping on orders over $35, plus exclusive partnerships and product offers. Same-day delivery is provided by Target’s delivery service Shipt, which the company acquired in 2017.

Target Circle 360 ​​serves as a paid version of Target Circle, a free loyalty program that has been around since 2019. The company is relaunching a more personalized program for members, including automatic discounts and personalized deals. Additionally, Target RedCard credit and debit cards will be renamed Target Circle, allowing customers to save an additional 5% off their purchases.

When it comes to pricing for new subscriptions, Target is offering a promotional rate of $49 annually through May 18th. After that, it’s $99 per year. However, if you have a Target Circle credit card, it will still cost you $49.

Target has been rolling out a paid membership system much later than its competitors, and the move comes as sales continue to decline (down for three consecutive quarters). The company hopes to copy Amazon and Walmart’s strategies to bring in additional revenue and boost sales. Even though Target’s fourth-quarter results beat Wall Street expectations, the company’s comparable total sales fell 4.4%. Additionally, Target expects sales to decline in the first quarter of 2024, with comparable sales expected to decline his 3-5%. Total revenue was $31.9 billion.

meanwhile, Amazon announced its fourth quarter results last month, touting sales of $170 billion, compared to $149.2 billion in the same period last year. The company attributed the jump in sales to a “record-breaking” holiday shopping season and October’s Prime Day event. Amazon launched its $139 membership in 2005 and currently has more than 200 million members.

Walmart also sees success from its paid membership, Walmart+, which debuted in 2020 for $98 a year.Walmart CEO Doug McMillon Said Investors reported in February that Walmart Plus members spend nearly twice as much as non-members and buy more products throughout the year.

“Looking to the future, we continue to build on the strengths and differentiators that have led to our strong financial performance over the long term,” Target CEO Brian Cornell said in Target’s letter to investors on Tuesday. We will continue to invest.” “Also, as part of our growth roadmap aimed at meeting consumers where they are, reigniting sales, traffic and market share growth, and positioning Target for profitable growth in 2024. , we’re also rolling out new innovations, including a new Target Circle membership program.” “


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