Target Corp TGT has unveiled its new paid membership initiative, Target Circle 360, aiming to compete with established subscription plans from industry rivals.
The program offers expedited same-day delivery and exclusive perks for members. Launching on April 7 at a promotional rate, the annual fee will rise after May 18, reported Bloomberg.
The move mirrors similar programs by Amazon.com Inc’s AMZN Prime and Walmart Inc’s WMT Walmart+, as per the report.
The company said consumers can apply for a Target Circle Card (previously known as Target RedCard) for an extra 5% off every day, extra time to return items, and free two-day shipping.
Paid memberships generate additional revenue and enhance customer loyalty. Target aims to emulate success seen by Amazon Prime, Walmart+, and Kroger Co’s KR membership programs, as per the report.
Target said it will continue investing in its stores-as-hubs model during the next decade.
Target’s fourth-quarter revenue of $31.92 billion beat the consensus estimate of $31.83 billion. Adjusted EPS of $2.98 came in above the street view of $2.42.
Price Action: TGT shares are trading higher by 12.7% at $169.61 on the last check Tuesday.
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