How Target's New Paid Membership Plan Compares To Amazon Prime and Walmart+

Target (TGT) is the latest retailer to roll out a paid membership program in an attempt to compete with its competitors.

Target said Tuesday that it will roll out its new program called Target Circle 360 on April 7. While the company didn't disclose subscription or revenue goals for the program, chief operating officer Michael Fiddelke said the program is designed to drive growth in how much consumers are buying.

Target is a little late to create a paid membership service and will have to compete with Amazon's (AMZN) Prime which was launched more than 15 years ago and Walmart+ which debuted in 2020. Here's how Target's new program will stack up against its rivals.

Competitive Membership Pricing

For Target Circle 360's April 7 launch, the fee will be $49 per year for members until May 18, when prices will increase to $99 per year for those without a Target credit or debit card. Even at full price, the annual membership is very competitive, with Amazon Prime at $14.99 a month or $139 a year, and Walmart+ at $12.95 a month or $98 a year. 

This program is an extension of an existing free program, Target Circle, which launched in 2019. The program offers coupons for goods through the retailer's app and the ability to earn Target Circle Rewards points on purchases. Target's store-branded credit card Circle Card, formerly known as RedCard, will continue to offer the free program and a 5% discount on purchases. 

Target Circle 360 Perks

For the membership fee, consumers will receive several perks from the Minneapolis-based retailer. As part of its new Target Circle 360, it will offer free same-day delivery for unlimited orders over $35 in as little as an hour using Shipt marketplace, along with free two-day shipping on orders from Target.com. Members will also enjoy 30 extra days for returns and exclusive partner perks.

According to Target, “This is just the beginning of our upgraded experience.” The retailer plans to continue adding benefits and perks like exclusive partnerships and discounts.

Benefits of Amazon Prime

Amazon Prime offers free same-day or two-day delivery but only allows free returns on eligible orders. Members also get special deals on groceries from Amazon Fresh and Whole Foods Market, and a free one-year membership to Grubhub+, which also boasts exclusive offers. 

Recently, Amazon introduced its RxPass as a part of its Prime membership, allowing members to get all of their eligible prescriptions for $5 a month with free delivery. Prime members can also take advantage of a try-before-you-buy option on certain clothes, shoes, and accessories; and unlimited full-resolution photo storage as well as 5 GB of video storage. Prime Reading is also included which gives members access to a rotating collection of over 3,000 digital books, audiobooks, magazines, comics, and more. Other perks like early access to newly released books, free games, music streaming, Prime Video, and membership sharing are also available.

Perks of Walmart+

Walmart's (WMT) membership offers free grocery delivery on orders over $35, fuel discounts, and video streaming with a Paramount+ Essential plan. Other benefits include free flat tire repair and road hazard warranty at Walmart Auto Care Centers nationwide, Walmart Cash rewards on travel bookings, and easy returns. 

There are also limited-time offers such as discounts on tax help or fitness programs. Walmart also offers 50% off memberships for those who are on government assistance, and they have a 30-day free trial option.