Mar 5, 2024 - Business

Target rolling out unlimited same-day delivery as part of Circle relaunch

Target workers pack items for pickup and delivery

Busy cashier check out and Shipt Order Pick Up area at Target Store, Queens, New York. (Photo by: Lindsey Nicholson/UCG/Universal Images Group via Getty Images)

Target is debuting an unlimited same-day delivery program on orders over $35 for an introductory price of $49 a year.

Why it matters: The relaunch of Target Circle will compete with similar programs by rivals Amazon and Walmart. Target says it's part of the company's 2024 plans for improving sales after a sluggish 2023.

The big picture: For now, Target is undercutting Amazon ($139 per year) and Walmart ($98), though those companies have perks like streaming video and gas discounts.

Zoom in: The new Target Circle 360 will allow customers to automatically get the deals and rewards that they previously had to scan as they shopped, Cara Sylvester, chief guest experience officer, said Tuesday during a presentation to investors following a quarterly earnings call.

  • The retailer will rebrand its RedCard credit card as Circle. Those cardholders will continue to get 5% off purchases, and will also get subscriptions to Circle 360 at the $49 price (the price for non-cardholders will increase to $99 per year after May 18, CNBC reported).

Catch up quick: Target's free Circle program launched in 2019 and has over 100 million users.

What's next: Target Circle 360 debuts April 7.

๐Ÿ›’ Back to suburban expansion

After several years of focusing on building small stores in dense urban areas and near college campuses, Target has been heading back to the suburbs.

What they're saying: CEO Brian Cornell said the shift started a couple years ago, but during Tuesday's presentation, he told analysts that the company anticipates opening 300 stores in the next 10 years that will be "mostly full-sized."

  • Target is not turning away from small format stores, but executives said the larger format ones offer bigger returns.

Of note: Target closed four of its small-format stores last year, including one in Uptown.

๐Ÿ’ธ More house brand items

With inflation still atop many shoppers minds, Target is expanding its lower-cost house brands.

Driving the news: The company will add hundreds of products to its Up & Up essential brand, with the average item under $7, said Rick Gomez, Target's chief food, essentials and beauty officer.

Flashback: In February, Target announced the launch of a new "dealworthy" store brand.

  • Dealworthy will eventually have 400 items spanning four categories: apparel and accessories, essentials and beauty, electronics and home. Products include toilet paper, phone cases, shirts and other basics.
  • Prices start at less than $1 and most items will be under $10.

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