Is Target Eyeing a Membership Program?
Target Corp., which has carved out its own retail identity over the years, may be taking a cue from other retail giants. According to Bloomberg News, the retailer is considering a paid membership program akin to Amazon Prime, Walmart+ and Kroger Boost, among others.
The Feb. 7 Bloomberg report cited sources who dubbed Target’s potential membership program “Project Trident.” The as-yet-unverified initiative may be rolled out this year.
The program would complement Target’s other perks for shoppers, including its free Target Circle rewards program that gives customers access to deals and lets them earn 1% when they shop to redeem later or 5% with the retailer’s own RedCard. Per the Bloomberg story, the program may also involve Shipt, the delivery service owned by Target.
Stiffer competition across the omnichannel and Target’s recent financial performance are contributing to the consideration of a membership program, the sources added. The retailer reported slower sales and revenue during the most recent earnings report released in November and its financial team emphasized the ongoing impact of stubborn food and beverage inflation.
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More details about the possible membership program may be forthcoming in Target’s fourth quarter and full fiscal year earnings report, due out March 5.
Progressive Grocer reached out to Target for comment, but did not receive confirmation of the membership program at press time.
Minneapolis-based Target Corp. is No. 6 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America, with nearly 2,000 locations. PG also included the company on its Retailers of the Century list.
