Retailer Target (TGT) will launch its paid membership program Target Circle 360 — a subscription tier of its free Target Circle loyalty program — in April. Target Circle 360 will include incentives for shoppers like complimentary same-day shipping options.
Target COO and CFO Michael Fiddelke sits down with Yahoo Finance Executive Editor Brian Sozzi to discuss the new membership program and how the company can leverage these perks to compete in the retail space.
"We're listening to our consumers — How can we make their shopping experience even better? How can we make them fall more in love with Target, with the products we sell... with the ways to shop that make getting those products easy?" Fiddelke states.
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Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
BRIAN SOZZI: Also, Target supposed to announce some form of membership program. What can you share on that front?
MICHAEL FIDDELKE: Well, more to come in our remarks this morning on some of the specifics, but what I can say is we start with a great foundation. Our Target Circle program with 100 million members has been really valued as a loyalty program by those that participate in it. That kind of free-to-join great value brought by Target Circle every day is a fantastic base. But like always, we're listening to the consumer to find ways we can make it better, we can make it easier, we can provide even more value. And so we'll share more today about what our plans look like to take that great starting program and make it even better.
BRIAN SOZZI: I imagine what after you announce this program, Michael, the comparison is going to be right to Amazon Prime. How far does Target want to push this? Does it want to get into content? Does it want to get into cloud services? What is Target's lane and how serious you are about taking that Amazon Prime member away?
MICHAEL FIDDELKE: Oh, like all things, we're listening to our consumers. How can we make their shopping experience even better? How can we make them fall more in love with Target, with the products we sell, with our owned and national brands, with the ways to shop that make getting those products easy? And so that's what you can expect us to pay attention to.
We've seen, like I said, a great response to some of those easy ways to shop like Drive Up. We think we have a real opportunity to capitalize on a strong foundation. And our Shipt will shop the store and bring it straight to your doorstep, that same-day offering. And we think there's runway to grow that offering too.
