Target Circle 360 is live. Here's how it stacks up against Amazon Prime and Walmart+

By Zoe Han

Target's new annual membership program costs $49 for now, but the price will increase to $99 after the promotional period ends

Another big retailer wants you to consider same-day delivery - for an added cost.

Target Corp. (TGT) has joined Walmart Inc. (WMT), Amazon.com Inc. (AMZN) and other retailers in the same-day delivery game by introducing a new tier to its membership program called Target Circle 360.

Launched this week alongside Target's annual sales event, Target Circle Week, the membership program will cost $49 per year for shoppers who join before May 18. After that, the price for Target Circle 360 goes to $99 a year. Shoppers using EBT cards will have to pay an additional fee for same-day delivery.

Target Circle 360 members will be able to have food, clothes and most other Target products delivered to their doorstep on the same day they order them, as long as their order totals at least $35. They can also enjoy same-day delivery service for items from over 100 retailers that partner with Target - including Ulta Beauty (ULTA), Petco (WOOF), and Sephora (FR:MC) - through Shipt Marketplace, an online multi-retailer delivery platform. Target bought Shipt in 2017.

Target's Circle 360 program is part of the retailer's effort to relaunch its Target Circle membership program, a free loyalty program that gives shoppers access to rewards and discounts. Target Circle members can gain access to more deals by applying for a Target Circle Card - which can be either a credit, debit or reloadable card - or by paying to become a Target Circle 360 member. Target announced the plan to its investors during its quarterly earnings call on March 5.

Members who sign up for a Target Circle Card - previously known as Target RedCard - get an extra 5% off each order. Cardholders and Target Circle 360 members also get access to free two-day delivery on eligible items.

After the promotional period ends on May 18, Target's cardholders will continue to be eligible for the annual Target Circle 360 membership at $49. The membership is comparable to Shipt's membership program, which costs $99 a year for same-day delivery.

Same-day delivery became popular during the pandemic for purchasing groceries, and consumer interest didn't wane once in-person shopping became available again.

"Shopping is dynamic, and so are we. The investments we're making reflect our focus on consumers' preferences and needs," said Cara Sylvester, Target's executive vice president and chief guest experience officer, on the company's earnings call in March.

Target will be competing against Amazon's Prime membership, which offers fast delivery and other perks to members, and Walmart, which introduced its Walmart+ program in 2020. On the company's latest earnings call, executives said delivery has become a key driver to attract high-income shoppers and Walmart+ members. Members spend nearly twice as much at Walmart compared to non-members, Walmart Chief Executive Doug McMillon told investors.

From Target to Walmart to Amazon, how do retailers' annual membership programs compare to each other and which one offers the best deal?

How much do Target Circle 360, Amazon Prime and Walmart+ cost? Are there discounts available?

Walmart+ costs $98 a year, or $12.95 a month. Amazon Prime costs $139 a year, or $14.99 a month.

Amazon Prime offers two discounted memberships - Prime Student and Prime Access - for eligible students and for people receiving government assistance. Prime Student costs $7.49 a month, or $69 a year, for college students and young adults aged 18-24. Prime Access costs $6.99 a month for people receiving government assistance such as Medicaid and benefits to pay for food.

Amazon Prime has become more expensive in recent years. It cost $99 a year before 2018, then $119. Then in 2022, Amazon upped the price to $139 a year. That's led some to question whether the membership is still worth the price.

An Amazon spokesperson defended the price increases. "Prime has always delivered disproportionate value to its members and will always do so," Kristin Lunghamer, an Amazon spokesperson, told MarketWatch in an email. The company "improves the membership each year with more selection, value and convenience," she added.

Over the past few years, Amazon has acquired other businesses and made access to their services a feature of Prime memberships. This includes access to One Medical, an on-demand medical service that offers members access to primary care physicians. Prime members get a one-year membership to One Medical for $99 a year or $9 a month.

What's the minimum cost of same-day delivery for Target Circle 360, Walmart+ and Amazon Prime?

Target's same-day delivery service will be available for Target Circle 360 members on orders of $35 and up, which is the same threshold as Walmart+'s same-day delivery service. For same-day deliver orders below $35, Walmart+ members are charged a $6.99 fee.

While Target says its same-day deliveries can arrive in "as little as an hour," Walmart asks members to choose its Express Delivery option if they want an item to arrive within an hour, which costs an additional $10.

Target Circle 360 members who are using an EBT card - an electronic benefits transfer card for public benefits - will be charged a $7 fee for same-day delivery, a Target representative told MarketWatch in an email.

While Amazon Prime offers various free-delivery options, including one-day delivery and same-day delivery, each delivery from Amazon Fresh grocery-delivery service must be at least $100 to qualify for free delivery, which Amazon says will arrive within two hours. Amazon lowered this minimum dollar amount in October, from $150.

What other perks do you get with Target Circle 360, Amazon Prime and Walmart+ aside from same-day delivery?

While Target's new offering is mainly focused on shopping and delivery, Amazon Prime and Walmart+ both offer other services with their subscriptions, such as streaming services.

Walmart+ members get free access to Paramount+ Essential, which usually costs $5.99 a month. Amazon Prime users get access to Amazon's digital products, including Prime Video, but there's a catch: Users have to pay an extra $2.99 a month if they don't want to see ads during their Prime Video shows and movies.

Aside from streaming and digital services, Walmart+ also offers additional savings such as lower prices on auto care and gas, and discounts on booking travel. Amazon Prime also comes with a free Grubhub+ membership for one year.

We want to hear from readers who have stories to share about the effects of increasing costs and a changing economy. If you'd like to share your experience, write to readerstories@marketwatch.com. Please include your name and the best way to reach you. A reporter may be in touch.

-Zoe Han

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

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04-08-24 1355ET

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