Target Considering Paid Membership Program, Says Report
Rumor has it that Target may soon be giving shoppers a membership program option similar to what Walmart and Amazon offer. According to the Bloomberg report, Target’s new program could be launched sometime this year. It’s worth mentioning that Bloomberg’s source declined to be “identified discussing private information” about the internally titled “Project Trident.”
Currently, Target offers a free loyalty program which is called Target Circle. It gives shoppers deals and rewards for their purchases. Rewards like 1% cashback on all purchases made in-store or online. They also offer a RedCard, saving customers 5% at the store. Bloomberg reported that the new program would offer other benefits and require a fee. Outlets such as Bloomberg and Reuters reportedly contacted Target’s corporate office for further comment but did not get a response.
What We Know
Target will be the latest to join the market of paid memberships and will have to directly compete with the likes of Amazon Prime, Walmart, and Kroger’s Boost programs. Right now, an Amazon Prime membership costs $14.99 per month, or $139 per year in the U.S. Meanwhile, Walmart Plus offers plans for $12.95 per month or a yearly plan for $98.
Paid memberships usually get customers access to free deliveries on their orders. In addition to free deliveries, there are often additional deals and discounts available with memberships.
In 2017, Target bought the grocery delivery business Shipt, which means there’s a chance they could incorporate it as an added benefit to the membership. Shipt offers same-day delivery on its platform.
The retail chain would need to offer bigger perks to stand out amongst its competitors. These would have to be benefits such as deep discounts, faster shipping, and low membership costs. Maybe this could also lead to a Target version of Prime Day.
According to Bloomberg, Target has faced months of declining sales. The store has also had its share of controversies recently. This month, Target pulled Black History Month products from their shelves that mixed up three Civil Rights icons. Last year, it had to pull some products after pushback from its customers surrounding its Pride Month collection.