Target to launch paid membership program to rival Amazon Prime, Walmart+

Target on April 7 plans to debut Target Circle 360, a paid membership program that builds on its Target Circle loyalty program, the company announced Tuesday. The new program will offer unlimited free same-day delivery for orders $35 and up, along with free two-day shipping, rivaling similar offerings from Walmart and Amazon.

Target will offer three membership options – Target Circle, which will remain free; Target Circle Card (formerly Target RedCard) and Target Circle 360. As part of a launch promotion, the paid Target Circle 360 memberships will cost $49 for the first year for noncardholders who sign up by May 18. After that, the annual cost for noncardholders is $99. For Target Circle cardholders, the annual cost will be $49.

At the same time, Target reported earnings, with Q4 revenue up 1.7% year over year to nearly $32 billion. Comparable sales fell 4.4% in the fourth quarter. For the year, revenue fell 1.6% to $107.4 billion from $109.1 billion a year earlier. Comps for the year fell 3.7%, while full-year operating income grew 48% to $5.7 billion from $3.8 billion a year earlier.

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