Target launches paid Circle 360 membership

In a nutshell

Target’s all-new Circle 360 program kicked off April 7, featuring free same-day delivery service and plenty of other perks.

• Target Circle 360 offers a variety of benefits, including same-day deliveries, two-day shipping and no-rush returns.
• Customers who sign up for the service before May 18 can enjoy a first-year subscription at only $49.
• While Circle 360 looks promising, it still falls behind Amazon Prime and Walmart+ when it comes to perks like streaming services and fuel savings.

What is Target’s Circle 360 program?

Target Circle is the department store chain’s loyalty program for customers. It features three membership tiers:

• Target Circle: Target Circle is a loyalty program that promises automatic deals at checkout and exclusive partner perks. It’s free to join on the website or in the app.
• Target Circle Card: Previously called the Target RedCard, the Circle card is Target’s new credit card. You’ll save 5% on every purchase, on top of any available deals, and enjoy perks like an extra 30 days on returns and free two-day shipping.
• Target Circle 360: This is Target’s new membership tier designed to compete with offerings like Amazon Prime and Walmart+. For one flat, annual fee, you’ll get free same-day delivery from Target and more than 100 retailers through Shipt.

While the first two tiers are free, Target Circle 360 comes with a membership fee. The regular price is $99 a year, but if you sign up before May 18, you’ll pay only $49 for the first year. Target Circle Cardholders will also pay only $49.

“The current pricing can be perceived as a good deal for Target fans, especially those who regularly shop online and will take advantage of the reduced first-year price,” says Greg Zakowicz, senior ecommerce expert at Omnisend. “However, for people who already have Walmart+ or Amazon Prime subscriptions, switching to Target would most probably make little sense.”

How it started

Target debuted its Circle program in 2019, taking it nationwide after beta testing it in select markets. The program offered a 1% discount on every purchase, with customers encouraged to sign up for a RedCard to up that savings to 5%.

In recent years, though, Target has faced increasing pressure to keep up with the conveniences offered by Walmart and Amazon. For $139 a year, Amazon gives its Prime customers free next-day delivery on select products, access to streaming services and free music and books. Walmart+ membership costs $98 a year after a 30-day trial and offers free delivery and shipping, fuel savings, streaming with Paramount+ and more. This pressure has led Target to launch a subscription service of its own.

“Target is hitting an interesting gap in the market that aims for more designer options while also providing a shopping experience,” says Reilly Newman, brand strategist and founder at Motif Brands. “Walmart is trying to elevate its brand to be higher end like Target, and Amazon doesn't offer a physical experience. Both of these brands also lack the smart subbrands that Target has been developing for the past five years that are beloved by Target shoppers.”

How it’s going

Target has a long way to go to catch up with Amazon. Amazon Prime has more than 200 million members, while Walmart+ reached the 59 million member milestone in 2022. Target boasts 100 million members in its free loyalty program, but as Jenn McMillen, founder and chief accelerant at Incendio, points out, Amazon is by far winning the game if sheer numbers are the only factor.

“It remains to be seen if Target, as a very late entrant into this melee, can convert those free members into paying members,” McMillen says. “Based on 30 years of experience in the loyalty and paid program spaces, I would guess that no more than 10-15% of the free members will convert to paid.”

What you get with a Circle 360 membership

Although Circle 360 is the new kid in town, there are already a few notable perks you’ll get with a membership. These offerings could be expanded once the program is more established, but here’s what you’ll get at signup.

Unlimited same-day delivery

Out of laundry detergent or dish soap? There’s no need to leave the house to get it. With a Circle 360 membership, you’ll get same-day delivery on select items through the website or app. You’ll pay no delivery fees or markups, and items can be dropped at your doorstep in as little as an hour. You’ll just need to meet a $35 minimum for each order.

Shipt Marketplace

Target isn’t the only same-day delivery option for Circle 360 members. You’ll also have access to same-day delivery through the Shipt marketplace, which includes more than 100 retailers. That gives you same-day delivery on products from Ulta, Walgreens, Costco and many others. But Target still has a long way to go to keep up with its top competitors.

“Compare that to the two million plus sellers on Amazon, and this value proposition is looking a little less valuable,” McMillen says.

Two-day shipping

In addition to same-day delivery on eligible items, you’ll also get free two-day shipping on hundreds of thousands of products. This offer isn’t exclusive to Circle 360 members, though. Circle cardholders also enjoy free two-day shipping.

No-rush returns

Generally speaking, Target’s return policy allows returns up to 90 days after a purchase. Circle 360 members can add 30 days to that, giving a little extra breathing room. The same return policy applies to items you buy from partner products on the Target website. The additional 30 days puts Target ahead of both Walmart+ and Amazon, which limit returns to 90 days and 30 days, respectively.

“At the moment it seems that Target's offering is heavily focused on shipping and return policies,” Zakowicz says. “So in the eyes of consumers, it will most probably lose to the competition if they don't add some extra benefits to the package quite soon or make their subscription price much lower.”

How to sign up for a Circle 360 membership

To join Circle 360, you’ll go to Target.com/account/memberships and either sign in or create a new account. Once you’re logged in, you’ll see the option to join for $99 a year. As long as you register on or before May 18, your discount will be reflected in the cart at checkout for a total annual fee of $49.

New account holders will be automatically enrolled in Target Circle when they sign up for a Circle 360 account. If you only want to sign up for Target Circle right now, you can do that at Target.com/circle or choose the Account tab in the app.

Target Circle 360 vs. Amazon Prime and Walmart+

With so many subscription options available, consumers can easily feel overwhelmed. But chances are, Target loyalists will be the ones most interested in this new plan. Don’t rule out the possibility of coupling your Target Circle 360 membership with either Amazon Prime or Walmart+, though. There are instances where it can work.

“Having more than one membership can be very beneficial if you plan out your purchases and use each for a specific purpose since these brands are built for different reasons and do make money on different products,” Newman advises.

For most people, though, one subscription is more than enough. To help you choose, we have a comparison of the services based on the most important features.

Preisgestaltung

Target’s $49 introductory price is the best deal around, but you’ll only get that for the first year. You’ll also have to act before May 18 to enjoy that pricing. The regular price for Target Circle 360 is $99 per year.

Walmart+ charges $98 a year for its similar service, but you do get a 30-day free trial to make sure the program works for you. Amazon, on the other hand, charges $139 a year for Prime. Amazon also lets you try out the service for 30 days before committing.

“At $99 per year, the real question is how many paid services can today's consumer afford?” McMillen asks. “Amazon at $139 per year rules the online space, which you can't beat for convenience and its myriad value-adds, but Walmart at $98 per year has a 40% larger footprint with its nearly 5,000 U.S. stores compared to Target's nearly 2,000. So, it's already easier to find a Walmart, and Amazon is on everyone's phone.”

Brand experience

All other factors aside, the bottom line is that some customers simply prefer the Target experience. Whether it’s the in-store ambiance or Target-specific brands, those customers will likely be drawn to Target Circle 360 because they’ll be making those weekly purchases even without free shipping and delivery.

“You'll find Pioneer Woman clothing and home goods at Walmart, and Target boats Hearth & Hand, the home goods line from Chip and Joanna Gaines of Magnolia fame,” says McMillen. “If you're a consumer making a decision on which retailer's program to choose, who do you most identify with?”

Fuel savings

With gas prices on the rise over the past couple of years, consumers have relied on loyalty programs to provide cost savings at the pump. This is one area where Walmart+ wins. Not only will you get a 10-cent discount at locations attached to Walmart stores, but you’ll also get 10 cents off at Exxon, Mobil and Murphy stations nationwide.

“With inflation hitting nearly all consumer segments, many are voting with their wallets,” McMillen says. “Gas is a weekly expense, and only Walmart offers gas discounts in their paid program.”

Streaming options

Since Target’s program is new, it’s tough to say whether offerings will eventually be expanded to include streaming services. For now, though, Amazon Prime and Walmart+ both offer video streaming as a perk of membership. In this area, McMillen says, “Amazon Prime wins, though Walmart+ has the lock on Paramount+ Essential streaming.”

Perks

At launch, Target’s extras are fairly slim, especially when compared to Amazon Prime’s much more established service. Prime members get access to more than 100 million songs, games and books, in addition to grocery delivery from Whole Foods and Try Before You Buy, which lets you try on garments and footwear before you pay for them.

As a Walmart+ member, you can enjoy streaming through Paramount+ and the convenience of having returns picked up at your door. You’ll also get free flat tire repair at Walmart Auto Care centers and 5% cash back on travel bookings through Expedia.

“Though the most expensive, Amazon Prime nails it for the sheer volume of perks and quick delivery,” McMillen comments. “Walmart comes in second for broadening their discounts to everyday essentials, and Target looks like a distant third — just based on published offerings.”

The AP Buyline roundup

For a new program, Target Circle 360 has plenty to offer. If you’re a Target loyalist, the plan could save you money. Those who can enroll in time to take advantage of the $49 introductory price may find that it’s worth it for the first year. As the program picks up steam, Target may expand it to include perks like streaming and partner discounts, putting it more in line with what Amazon and Walmart+ already offer.

Frequently asked questions (FAQs)

Is Target Circle 360 only a good deal for brand loyalists?

Target has a core group of brand loyalists who regularly shop in the store and online. However, even if you only pop into a Target once a month or so, you may find $49 a year is a great deal. You can then decide if it’s worth it when the price increases to $99.

“I don't see memberships being for those who are not already in love with the brand,” Newman says, “just as Costco's members love their brand and appreciate the value provided. However, since Target is only $99, I do think it is a good deal for even non-loyalists as the savings and added value will collect quickly.”

Should I consider switching to Target Circle 360 if I already have a Walmart+ membership?

If you’re a Walmart+ member who likes to shop at Target, you may be dreading the process of making the switch. As Zakowicz points out, customers tend to resist making a switch when two services are comparable in price. There’s also the potential that you’ll forget to cancel the subscription at the end of your term.

“Around 42% of Americans forget to cancel subscriptions for services they no longer use,” Zakowicz says. “If Target manages to keep those first-year users happy, they will have them for a second year as well.”

As appealing as the $49 first-year membership may sound, keep in mind that the deal is only for the first year. Next year at this time, you’ll face the decision to stay with Target or switch back to Walmart+. If it’s worth saving $49 for a year of same-day deliveries from Target versus Walmart, it might be worth it. Also keep in mind that Walmart’s prices tend to undercut Target’s for many everyday items.

Should I join Target Circle 360 and keep my Amazon Prime or Walmart+ membership?

Multiple memberships can have their benefits, especially if you shop with more than one retailer each week. Zakowicz recommends taking a look at your own habits and determining whether you’ll get value out of paying an annual fee to more than one retailer.

“This, of course, would depend on every consumer's needs,” Zakowicz says. “What I would advise is to evaluate which of the services you use the most, where you usually order your items online and see if having a subscription would help you save some time or money. Having more than one membership only makes sense if you regularly shop in more than one online marketplace.”