Target Introduces Target Circle 360 to Compete in the Fast Delivery Market

Target is ready to escalate the shipping war with its latest subscription plan, Target Circle 360, set at an annual fee of $99, providing customers with unlimited free, expedited deliveries. Kicked off by a recent earnings call, this strategy positions Target in direct competition with major players like Walmart and Amazon, who have also designed similar programs to eliminate shipping costs for a yearly subscription.

Exclusive Membership Deals

Beginning April 7, Target Circle 360 will be available, promising customers free two-day shipping on online purchases, along with complimentary same-day delivery for orders totaling $35 or more. To sweeten the deal, early birds will be able to snatch this membership for just $49 until May 18, thanks to an introductory offer.

Upgrade and Rebranding of Target's Delivery Services

The Target Circle 360 is more of an enhanced version of its existing delivery services rather than a ground-breaking innovation. Shipt, a Target subsidiary, currently provides same-day delivery provided by local drivers from nearby stores at that same $99 yearly cost. On Target.com, customers can also enjoy free two-day shipping on orders over $35 without a subscription. The integration of Shipt membership benefits with the two-day shipping option, and removal of minimum order conditions renders this new plan particularly attractive to existing Shipt subscribers, offering a broader range of perks.

Competing in a Merged Retail Landscape

In this era, where online and in-store shopping experiences are increasingly interspersed, Target's refined strategy is significant. Both Target and Walmart are optimized to fulfill online orders by tapping inventory from local stores and warehouses. Conversely, Amazon's strategy leverages its extensive network of warehouses for swift delivery services. It's worthy of note that all three corporations are supported by a combination of gig workers and substantial third-party delivery services, such as UPS, FedEx, and USPS. Although Target may not match Amazon's Prime delivery reach, this new membership hopes to entice Amazon's clientele by providing a service that resonates with the Prime model.

Target, Shipping, Subscription