Target is launching Target Circle 360, a $99 per year subscription that will provide free, unlimited shipping and rush delivery on online orders. The new program, first announced during Target’s earnings call on Tuesday, will rival similar offerings from Walmart and Amazon, which cut shipping costs through annual fees. Target Circle 360 members receive free two-day shipping and free same-day shipping on orders over $35. The plan will first launch on April 7 and will be available for $49 until May 18 as a launch promotion.
This isn’t Target’s first foray into paid subscriptions. In fact, Target Circle 360 does not appear to be a new initiative, but a rebranding and upgrade of its current delivery services. Target-owned Shipt already offers free same-day delivery from nearby Target stores (with local delivery drivers) for $99 per year. Target.com also currently offers free two-day shipping on online orders of $35 and more, no subscription required. The new Target Circle 360 program appears to combine a Shipt membership with free two-day shipping, but without a minimum order requirement. So for Target fans who already subscribe to Shipt, the new $99 plan will no longer be available. also different. Target Circle 360 will also include access to Shipt Marketplace, which means free shipping from other stores as well.
Target’s new plans come at a time when the lines between e-commerce and brick-and-mortar stores are blurring more than ever. Target and Walmart both take online orders from nearby brick-and-mortar stores and warehouses. Meanwhile, Amazon’s vast network of warehouses and distribution centers means there’s always a distribution center nearby. Amazon plans to build more same-day delivery sites this year that will deliver, sort and ship products from one location. All three companies rely on gig workers and large third-party delivery partners like UPS, Fedex and USPS, which increases labor and shipping costs. While Target will never be able to compete with Prime on delivery, it can still attract some customers by offering a similar membership.
