Target is channeling Amazon and Walmart

The bullseye retailer is putting on its sumo loincloth and stepping into the ring with the big boys. Target yesterday announced the launch of Target Circle 360, its new subscription-based membership program that takes direct aim at Amazon Prime and Walmart+.

What’s included:

• Unlimited free same-day delivery for orders over $35
• Free two-day shipping and an extra 30 days to return purchased items
• Access to a marketplace operated by Shipt – a delivery company Target purchased for $550 million in 2017 – that offers free same-day delivery from dozens of retailers, not just Target

Target Circle 360 is slated to launch in early April and cost $99 per year (compared to $139/year for Prime and $98/year for Walmart+). However, Target is offering a discounted rate of $49/year through May 18.

It’s time for a Target turnaround. While the bullseye retailer reported Q4 earnings and profit that outpaced Wall Street’s expectations, it also reported its first annual sales drop in seven years.

Target – contrary to Walmart, America’s biggest grocer – has historically relied on discretionary spending from consumers (think: optional spending), which has been slowing as more of people’s budgets go to meet their basic needs. It’s been 30 years since food costs have accounted for such a high percentage of Americans’ spending, per government figures.

👀 Looking ahead… While consumer adoption of the new membership program is still a question mark, the bullseye retailer hopes it’ll be like The Mountain from Game of Thrones – big and strong. Its current Target Circle program has more than 100 million members, per the company.