Target is introducing a new subscription service called Target Circle 360, priced at $99 annually. This service will offer free, unlimited delivery and rush shipping on online orders, aiming to compete with similar offerings by Walmart and Amazon. Members of Target Circle 360 will benefit from free two-day shipping and free same-day delivery on orders of $35 and above. The plan is set to launch on April 7, with a promotional price of $49 until May 18.
Interestingly, Target Circle 360 seems more like a rebranding and enhancement of its current delivery services rather than a completely new plan. For instance, Shipt, which is owned by Target, already provides free same-day delivery from nearby Target stores at an annual fee of $99. Additionally, Target.com currently offers free two-day shipping on online orders of $35 or more without the need for a subscription. The new Target Circle 360 plan consolidates the benefits of Shipt membership and free two-day shipping without any order minimums. This means that existing Shipt subscribers may not notice a significant difference with the new $99 plan.
Target’s new subscription service comes at a time when the boundaries between online and brick-and-mortar retail are becoming increasingly blurred. Both Target and Walmart leverage nearby physical stores and warehouses to fulfill online orders efficiently. On the other hand, Amazon continues to expand its network of warehouses and fulfillment centers, ensuring quicker deliveries for its customers. Amazon’s plans to build more Same-Day Delivery sites further exemplify its commitment to enhancing the delivery experience.
While Target may not be able to match Amazon Prime’s extensive delivery network, it can still attract customers by offering a similar subscription service. All three companies rely on a combination of gig workers and third-party delivery partners like UPS, FedEx, and USPS to handle their shipping needs. However, these partnerships come at an additional cost in terms of labor and shipping fees.
Target’s new Target Circle 360 subscription service is a strategic move to stay competitive in the retail industry. By providing free, unlimited delivery options and rush shipping, Target aims to attract customers who value convenience and speedy delivery. As the retail landscape continues to evolve, it will be interesting to see how Target’s new plan fares against its competitors, Walmart and Amazon.
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