Target Launching Paid Membership Program

Since sales and revenue were down in the fourth quarter, Target is looking for ways to add sales and traffic.   According to CNBC Target is joining the club of companies like Walmart and Amazon by offering paid membership programs. The company is launching Target Circle 360.  This program will cost $99 a year, if you get on board before May 18th you will get a discount at $49 during this promo period. This new program will roll out starting in early April.  Customers can expect perks like free same-day delivery for orders over $35 and other bonuses that they are still working on to increase the number of shoppers.

Target hopes this will boost its online sales, especially since its digital sales have been dropping lately. They are hoping they can grow their sales like the success of Walmart. Walmart’s earnings call in February shows that Walmart's paid membership program continued to grow by double-digit percentages.

The idea of  this program is to make shopping easier and more convenient. Just think, without even leaving your house you can have items delivered right to your door, sometimes within an hour. This move comes as Target tries to keep up with the changing ways in which retail and the success of subscription-based services are headed.

Target is even revamping their free loyalty program, Target Circle. They are making this program more user-friendly and personalized. What I like about this free program is that members who belong to the free program will have discounts automatically applied rather than having to scan through deals on the app. I really cannot stand the time-consuming ways in which we have to use various store apps to find coupons to save money, even when we are members.

This strategy of paying for a membership program to shop is, of course, not new.  Amazon and Walmart have had success with their membership programs, with millions of subscribers enjoying benefits like free shipping and exclusive deals. Walmart+ members spend nearly twice as much as non-members. So, Target is hoping this new program will not only attract more customers but also increase how much they spend.