On Tuesday, the retail giant Target announced that it will launch a paid membership program next month, following in the footsteps of its fellow retail competitors.
Customers will soon be able to pay $99 per year for Target Circle 360, which launches in April and will include unlimited free same-day delivery for orders over $35 and free two-day shipping, along with other perks.
The subscription service is another new stream of revenue that Target will look to use as a boost to its weaker sales announced in this week’s fourth-quarter earnings and revenue report.
Those who are excited to sign up will get a discount as the service will be $49 per year from its launch until May 18. Target Red Card members will also receive a discount on the service after the promotion ends.
The company shared that more than 100 million people have already signed up for its free Target Circle program, which offers customers special deals on items, among other perks.
Target CEO Brian Cornell spoke with CNBC about the membership program, saying it will encourage customers to order online more, something market research says is becoming a popular option.
“There’s a guest who’s looking for the ease and convenience of having something brought right to their home — in some cases, within an hour —and we just want to elevate the awareness that we can do that,” he said.
The pricing for the membership program falls in line with those of its competitors.
Amazon Prime, which offers free two-day delivery and streaming of popular movies and TV shows, costs $139 per year or $14.99 per month.
Walmart’s subscription service, Walmart+, launched in 2020 and costs $98 per year or $12.95 per month. The service offers customers free shipping, grocery deliveries for orders of at least $35, and gas discounts.
Now, Target Circle 360 will join the mix of subscription services, offering consumers another option.