Minneapolis-based Target cuts some same-day delivery price markups for Circle 360

Target is making another play at incentivizing its highest reward tier by offering markup-free prices on same-day delivery items from a score of popular retailers via its ecommerce shipping site, Shipt.

Previously, a member of the Minneapolis-based retailer’s highest membership tier, Circle 360, would pay more for a speedy delivery of third-party sellers’ goods. Now more than 100 of those sellers will have the same price as in-store items.

Similar to before, Circle 360 members will have to exit the Target app to access Shipt’s platform. Members can then enter their Circle 360 login into the Shipt app to access the new perk without signing up for other retailers’ membership programs.

“In a time when consumers are looking to save both time and money, Target and Shipt are shaping a one-of-a-kind, dynamic retail ecosystem that lifts up our retail partners while helping members save,” Shipt CEO Kamau Witherspoon said.

Analysts said this move might position Target to better compete with other loyalty offerings from big box retailers.

“The multi-retailer aspect is unique and adds value for Circle 360 members, but likely won’t take business away from Walmart or Amazon,” retail consultant Carol Spieckerman said. “If the goal is to bring on the perks for Circle 360 members, mission accomplished.”

Launched in April 2024, Target Circle 360 is a paid membership tier that provides unlimited same-day delivery on orders of $35 or more, along with free two-day shipping on thousands of items.

The announcement leverages Target’s 2017 acquisition of Shipt, broadening the scope of its delivery services to increase customer engagement and loyalty. Circle 360 members can order from retailers like CVS, PetSmart and Lowe’s without additional fees.

“From the start, Target Circle 360 has been about building strong relationships with our guests and growing with them to deliver more value and ease,” said Cara Sylvester, chief guest experience officer for Target. “We’ve built a true digital shopping center experience — making your Saturday errand run easier, faster and more affordable.”

The change comes as Target seeks to revitalize sales and strengthen its position in the competitive retail landscape. Same-day services like in-store pickup, drive-up and Shipt deliveries have shown growth, representing more than 10% of the retailer’s total sales.

The retailer also recently introduced Circle 360 “freebies,” a reward that allows members to choose monthly between free products, dollars toward their next purchase and other offerings.

Target Circle cardholders can purchase a one-year Circle 360 membership for $49. Circle cards are free upon approval of application. Non-cardholders pay $99 annually.

Target reports its first-quarter earnings Wednesday. Many analysts have lowered expectations as consumer confidence continues to dwindle, and Target faces pressure from boycotts the retailer’s decision to rebrand its DEI initiatives sparked.

U.S. consumer sentiment fell slightly in May for the fifth consecutive month, according to the University of Michigan. It is the second-lowest level in the nearly 75-year history of the survey. The only lower reading was in June 2022. Sentiment has fallen nearly 30% since January as President Donald Trump introduced, stalled and renegotiated tariffs on many countries.

In an effort to draw more customers to stores and reignite demand, Target announced Thursday the launch of 10,000 new items for summer. New giveaway events, Hello Summer Saturdays, will also run through June.