In a fourth-quarter earnings call a week ago, Target executives acknowledged the retailer had lost a bit of its “magic” that once retained loyal customers and enticed new ones.
Target upgrades Circle Week deals in quest for $15B sales growth in five years
A year after introducing its revamped rewards program, the Minneapolis-based retailer is using it to help return to annual growth of 2.5% to 3%, something it hasn’t consistently done since the panic-buying days of the pandemic.
The Minnesota Star Tribune
March 12, 2025 at 10:01AM
The Minneapolis-based company vowed to conjure more customers at its annual investors day last week, pledging to grow sales by $15 billion in five years. And it made a step toward that Wednesday with an enhanced slate of Circle Week deals starting March 23.
The weeklong events aren’t exactly new. A year ago, Target started the quarterly promotions week when it retired the RedCard name and launched an upgraded rewards program, which included the 360-tier membership to compete with Walmart+ and Amazon Prime.
This installment has some upgraded perks, like three months of free access to streaming service Peacock Premium for all Circle members and early access to deals, on March 22, for 360 subscribers.
During the week, 360 memberships — which offer free same-day delivery and two-day shipping — will also be 50% off the annual $99 fee. Gaining more shoppers, both paid subscribers and deal hunters, could help Target create its aspirational annual sales growth of 2.5% to 3%, something it hasn’t consistently achieved since the panic-buying days of the pandemic.
Despite predicting a slow year, Target’s CEO Brian Cornell seemed sure the plan will succeed.
“Sitting here today, I don’t think I’ve ever been more excited or more confident about the direction we’re headed,” Cornell said in the earnings call with investors.
And at least in one area, Target is progressing: It added 13 million new Circle members in 2024, totaling more than 110 million overall.
Target Circle Week deals
While few of the advertised Circle Week deals appeared to be clearance-worthy of at least half-priced, the markdowns were wide ranging and available in several different formats.
For example, shoppers can nab up to $200 off Apple products, earn a $15 gift card for purchasing $50 worth of household essentials like toilet paper and cleaning supplies, or buy two, get one free on books, movies and music. One of the early access deals for 360 members: a pair of Beats wireless Bluetooth headphones in a Target-exclusive color of Arctic Purple for $49.99, $30 off list price.
Target will also return the “Deal of the Day” feature, which has included popular brands like Lego, Squishmallows and Apple in the past.
“We are thrilled to celebrate the one-year anniversary of Target Circle 360 with our best Target Circle Week yet,” Cara Sylvester, executive vice president and chief guest experience officer, said in a news release. “Target Circle members will receive the biggest deals on thousands of items from the latest in spring style to everyday favorites that are always on the checklist. ... There has never been a better time to join, save and discover the best of Target.”
Rivaling Amazon Prime, Walmart+?
When Target first announced its revamped rewards program in March 2024, Brian Yarbrough, an analyst with Edward Jones, noted rivals Walmart+ and Amazon Prime had features Target didn’t, including media streaming and gas savings.
“I don’t think there’s a ton new in there,” he said at the time, though he praised it for being free to join and having deals automatically applied at checkout. “It’s just combining what was kind of three different programs and putting it all together.”
A year later, that sentiment still exists. Ahead of Target’s recent earnings, analysts were critical of the retailer’s lack of loyalty program offerings.
“Target’s rollout of its new membership program felt a bit clunky,” Toopan Bagchi, a former Target executive who is now the founder and managing director at Starship Advisors, said last week. “It seemed like a missed opportunity to seamlessly integrate more partnerships into a robust, compelling loyalty offering. Competing programs often include streaming content, restaurant and fuel discounts and travel benefits, for example.”
This is a developing story. Check back for updates.
Correction: A previous version of this story mischaracterized Target's sales growth in recent years. The retailer has not consistently achieved 2.5% to 3% annual sales growth since the panic-buying days of the pandemic.
A year after introducing its revamped rewards program, the Minneapolis-based retailer is using it to help return to annual growth of 2.5% to 3%, something it hasn’t consistently done since the panic-buying days of the pandemic.
