Target launches paid membership program as it chases new revenue streams

Target launches paid membership program as it chases new revenue streams


A customer shops for holiday gifts in a Target store on December 21, 2023 in Austin, Texas. 

Brandon Bell | Getty Images

Target on Tuesday said it will launch a paid membership program next month, riffing off the playbook of its rivals Amazon and Walmart.

The subscription tier, Target Circle 360, will include unlimited free same-day delivery for orders over $35 in as little as one hour with no delivery fees and two free-day shipping, along with other perks.

The paid membership tier will launch in early April and cost $49 per year, said Cara Sylvester, Target’s chief guest experience officer. She announced the program at an investor event on Tuesday in New York City.

The retailer will also relaunch its free Target Circle loyalty program, which debuted in 2019, to make it easier to use and more personalized. For example, members who belong to the free program will have discounts automatically applied rather than having to scan through deals on the app, she said.

The big-box retailer is turning to the new revenue stream as it tries to boost weaker sales. Its fiscal fourth-quarter earnings and revenue reported Tuesday beat Wall Street’s expectations, but its comparable sales have declined three quarters in a row.

With the move, Target is also following in the footsteps of retailers that have turned membership fees into a money maker and a sales driver. Amazon launched its Prime program in 2005, with perks like free two-day delivery and streaming of popular movies and original TV shows. It costs $139 per year or $14.99 per month, with the video membership-only option of $8.99 per month.

Walmart launched its program, called Walmart+, in 2020. It costs $98 per year or $12.95 per month, with perks like free shipping, free grocery deliveries for orders of at least $35 and gas discounts.

Target is turning to its competitors’ playbook for a reason: Walmart CEO Doug McMillon told investors on the company’s earnings call in February that Walmart+ members spend nearly twice as much as non-members and buy more over the course of a year.

Walmart has not said how many people subscribe to Walmart+, but its CFO John David Rainey said on the earnings call that its membership continues to grow by double-digit percentages.



Source

Chipotle stock craters as Wall Street grows ‘concerned’ after company cuts forecast
Business

Chipotle stock craters as Wall Street grows ‘concerned’ after company cuts forecast

A Chipotle logo is displayed on a sign at a shop on June 1, 2025 in Washington, DC. Kevin Carter | Getty Images Shares of Chipotle Mexican Grill tumbled as much as 19% in morning trading on Thursday after the company cut its full-year same-store sales forecast for the third straight quarter. Including Thursday’s move, […]

Read More
This doctor raised 0 million from Michael Dell, Jim Breyer and others to try to fix health care
Business

This doctor raised $130 million from Michael Dell, Jim Breyer and others to try to fix health care

Dr. Clay Johnston, co-founder and chief medical officer of Harbor Health. Courtesy of Harbor Health A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox. When tech founder Michael Dell and his wife […]

Read More
Comcast beats earnings estimates despite more broadband subscriber losses
Business

Comcast beats earnings estimates despite more broadband subscriber losses

Comcast topped Wall Street earnings and revenue estimates for the third quarter on Thursday, despite once again reporting a loss in broadband customers.  The company said it lost 104,000 domestic broadband customers during the period, bringing its total subscriber base to roughly 31.4 million. This marked the fourth quarter in a row that Comcast failed […]

Read More