Target launching new paid membership program, Target Circle 360

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A customer holds a Target shopping bag in San Francisco, California, US, on Thursday, Sept. 28, 2023. Photographer: David Paul Morris/Bloomberg via Getty Images

Target is relaunching its Target Circle loyalty program to include a new paid membership option.

Target unveiled a series of steps at its annual investors’ meeting Tuesday that aim to rejuvenate sales and traffic.

One includes Target Circle 360, a paid loyalty program that includes unlimited free same-day delivery in as little as an hour for orders over $35.

The membership will be available at a special promotional price of $49 per year from April 7 through May 18, when it will then reportedly cost $99 per year.

Target’s membership is competing against Amazon Prime and Walmart delivery memberships. In comparison, an Amazon Prime membership costs $15 a month or $139 annually and includes free streaming of its Amazon Video, among other perks. The Walmart Plus program for free shipping costs $12.95 per month or $98 in annual fees.

The free Target Circle loyalty program will continue with personalized deals, member-exclusive sales throughout the year and additional perks and savings.

Target also announced Tuesday it will be refreshing its stores and, over the next decade, build more than 300 new ones.

Target is more vulnerable than Walmart and other big box discounters amid inflation. More than half of Target’s annual sales come from discretionary items like toys, fashion and electronic gadgets, things that many Americans have stopped buying.

Last month, the retailer launched a new collection called Dealworthy which features nearly 400 everyday basics starting at less than $1, with most items under $10.

They include clothing and accessories, home items and electronics.

This story was reported from Detroit. The Associated Press contributed.