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Target has announced the launch of its new subscription service, Target Circle 360, which will offer customers free, unlimited delivery and rush shipping for online orders. This move comes as Target aims to rival Walmart and Amazon, both of whom offer similar benefits to their members for an annual fee. Target Circle 360 will provide members with free two-day shipping and free same-day delivery on orders that are $35 and above. The subscription plan will be priced at $99 per year and is set to debut on April 7. As a launch promotion, the price will be reduced to $49 until May 18.
Interestingly, this is not Target’s initial foray into paid subscriptions. In fact, Target Circle 360 can be seen as a rebranding and upgrade of its existing delivery offerings. Target-owned service, Shipt, already offers free same-day delivery from nearby Target stores for $99 annually. Additionally, Target.com currently provides free two-day shipping for online orders totaling $35 or more, without the need for a subscription. The new Target Circle 360 plan seems to combine the benefits of Shipt membership and free two-day shipping, without any minimum order requirements. For loyal Shipt subscribers, the $99 plan may not bring about significant changes. Moreover, Target Circle 360 will also provide access to the Shipt Marketplace, enabling free delivery from other partner stores.
Target’s introduction of this new subscription service comes at a time when the lines between online and brick-and-mortar retail are becoming increasingly blurred. Both Target and Walmart leverage their physical stores and warehouses to fulfill online orders. Meanwhile, Amazon’s extensive network of warehouses and fulfillment centers ensures the availability of delivery hubs in close proximity to customers. Amazon has plans to expand its Same-Day Delivery sites this year, enhancing its capacity for fulfilling, sorting, and shipping products from a single location. All three companies rely on gig workers and third-party delivery partners, such as UPS, FedEx, and USPS, which come with additional labor and shipping costs. While Target may struggle to compete with Amazon’s Prime delivery service, it can still attract customers by offering a comparable membership experience.
With the retail industry evolving rapidly, the introduction of Target Circle 360 suggests a shift towards providing added value and convenience to customers through subscription models. As consumers increasingly seek fast and reliable delivery options, subscription services like Target Circle 360 have the potential to redefine customer expectations and loyalty. By combining the benefits of multiple services under one subscription, Target is positioning itself as a versatile and convenient option for shoppers.
Looking forward, it is likely that other retailers will follow suit and introduce their own subscription services to meet the changing demands of customers. Furthermore, as ecommerce continues to grow and compete with traditional brick-and-mortar retail, the need for streamlined delivery networks and partnerships with third-party logistics providers will become increasingly crucial. Retailers must navigate the challenges of the gig economy and rising shipping costs while ensuring timely and efficient delivery to remain competitive.
Overall, Target’s new subscription service, Target Circle 360, represents an important step in the evolution of the retail industry. As customer expectations and preferences continue to evolve, retailers must adapt and innovate to stay relevant. Subscription-based models offer a compelling solution to provide added value and convenience to shoppers, and it will be interesting to see how this trend develops in the coming years.