Target Outlines Next Era of Growth
Target has outlined plans to invest in its guest experience and long-term growth with a focus on:
- Making the Target Circle membership program more personalized.
- Growing its owned brand portfolio with new and on-trend items.
- Investing to build new stores and enhance existing locations.
"For years, Target has consistently built for the long term, investing in the assets, capabilities and team that have differentiated our business, enabled us to deliver for guests in any environment and driven strong growth," Brian Cornell, chair and CEO, Target, said in a media release. "Today, with that same long-term view, we're making strategic investments that expand on our core strengths, further elevate our guest experience and deepen our connection to both current and new guests. Most importantly, these plans provide fuel for our next era of growth."
New Target Circle
On April 7, Target will reintroduce its Target Circle loyalty program with three membership tiers, including the continuation of a free-to-join membership, retail payment card options and a new paid membership.
Target Circle first launched in 2019 and has amassed more than 100 million members, according to the retailer. Target says the changes reflect guest feedback and members' desire for an even easier and more personalized shopping and saving experience, per the release.
The membership options include:
- Target Circle: The existing free-to-join membership offers personalized deals and games based on shopping history, member-exclusive sales, free trials and the ability to link other rewards programs. Come April 7, deals will also be applied automatically at checkout.
- Target Circle Card: Previously known as Target RedCard, shoppers can apply for this membership offering an extra 5% off every day, as well as an extra 30 days to return items, free two-day shipping on most items and automatic deals and personalized bonuses. (Cardholders will also get special pricing for Target Circle 360.)
- Target Circle 360 – A new paid membership (costing $99 a year) that includes unlimited free same-day delivery for orders over $35 with no delivery fees or markups, free two-day shipping, access to preferred shoppers who can personalize their experience and access to Shipt Marketplace, which offers same-day delivery from more than 100 retailers nationwide.
As a special launch offer, Target is offering a discounted price for Target Circle 360 from April 7-May 18, costing $49 for the first year.
New and expanded private-label brands
In 2024, Target plans to launch and expand several owned brands to offer a wider range of options across categories, products and prices, including:
- dealworthy – Launched in February, the discount brand spans nearly 400 everyday basics across apparel and accessories, beauty and essentials, electronics and home, starting under $1 with most items under $10.
- up&up – Launched 15 years ago, Target has relaunched its largest and most expensive essentials brand with new formulations, branding and packaging, plus hundreds of new everyday items including in personal care, health, pet care and storage.
- Gigglescape – The new toy brand rolling out this year will offer an assortment of plush, books, toys, games and more items.
Target’s private-label brands amassed more than $30 billion in sales in 2023.
[ALSO READ: Target Expands Wellness Assortment]
Continued store, supply chain investments
Target will continue investing in its stores-as-hubs model during the next decade with plans to:
- Build more than 300 new stores.
- Invest to enhance the vast majority of its nearly 2,000 stores, with projects ranging from full remodels to adding Ulta Beauty locations, upgrading fixtures and supporting same-day services.
- Continue enhancing supply chain operations for increased efficiency, speed and capacity, including next-day delivery through sortation centers, and using artificial intelligence to improve inventory efficiency and forecasting across its network.
