Target is considering a new paid membership program for customers similar to Amazon and Walmart. Bloomberg News reported This was disclosed on Wednesday, citing a person familiar with the matter.
The new program, internally dubbed “Project Trident,” could launch as early as this year, the report said, but no details on pricing for the membership program were provided. It has not been.
Target did not respond to a Reuters request for comment.
As a latecomer to the paid membership market, the company will have to compete with Amazon Prime, Walmart Plus and Kroger’s Boost program.
In the US, an Amazon Prime membership costs $14.99 per month, or $139 per year, while Walmart Plus offers it for $12.95 per month, or $98 for an annual plan.
Paid memberships typically allow customers to get free delivery on their orders, as well as additional deals and discounts, increasing a company’s revenue.
Target has grappled with weak sales over the past year as Americans cut back on spending on discretionary items, which make up the bulk of retailers’ product assortments.
The company already offers customers a free loyalty program called Target Circle, which gives shoppers access to even more deals and discounts on their purchases.
Bloomberg said Project Trident could also incorporate Shipt, the grocery delivery business it acquired in 2017.
The retail giant’s stock rose about 2% on Wednesday.
