Since 2020, there has been a stronger push to digitize the retail space. Most of us prefer online shopping and spend significantly less time shopping in person compared to previous decades. Our new digital era deems online fulfilment as king and only a few traditional brick-and-mortar stores have the tools to survive.
Amazon is notably one of the first and largest online retailers, and its Amazon Prime members have become accustomed to placing an order on a Monday and receiving it by Tuesday, or even sooner.
Walmart has made tremendous strides to compete with Amazon. With 4,600 stores in the U.S. alone, there is at least one Walmart location within 10 miles of 90% of the U.S. population. Leveraging its extensive physical footprint, Walmart uses its stores as fulfillment warehouses to get products to customers quickly.
Between Amazon and Walmart, there are hundreds of millions of products available for next-day shipping or delivery.
Target is also ramping up and expanding its digital marketplace. Like Walmart, Target plans to use its 2,000 U.S. store locations as fulfillment hubs for a surge in online orders.
During its Q4 earnings call on Tuesday, Target announced the launch of Target Circle 360—a paid membership program offering fast and free shipping, along with other benefits, to Target customers. The program is set to launch on April 7.
Benefits of the program include:
- Unlimited free same-day delivery for select orders $35 and above
- As little as one-hour delivery on select items
- Free two-day shipping
- Access to Shipt’s “preferred shoppers” program
The Target Circle 360 membership will cost $49 per year during the promotional period, which ends on May 18. Target plans to raise the price to $99 per year, and it is unclear if more benefits will be added at that time.
For comparison, Amazon Prime is priced at $139 per year and benefits include:
- Free shipping and returns, often two-day or next-day on select items
- Access to Prime Video streaming
- Savings at Whole Foods Market
- Try Before You Buy shopping
- Amazon Photos storage
Walmart+ is priced at $98 per year and benefits include:
- Free shipping and returns on select items
- Fuel savings at Exxon, Mobil, Walmart, and Murphy gas stations
- A Paramount+ steaming subscription
- Select auto maintenance at Walmart Auto Care
- Cashback on select travel expenses
- Members-only pricing during promotions such as Black Friday
What Target has going for it is that the retailer has completely nailed the brick-and-mortar experience. Thousands of influencers on Instagram and TikTok make jokes about “going to Target and letting Target tell them what they need,” or “husbands stranded in the Target parking lot as their wives shop.” Target is a destination for many consumers who genuinely enjoy the in-store shopping experience. After all, you just can’t smell candles online through a screen!
According to a Reddit thread, when asked if consumers prefer Walmart or Target, a comment with 889 upvotes stated “Target by far… it’s nicer, products are better quality, and most Walmarts here are in sketchy parts of town.” Another comment with 366 upvotes stated, “Target is cleaner and has somewhat higher quality stuff, especially clothes, but it’s also more expensive compared to Walmart.”
Perhaps Walmart needs to gain an online presence to make up for its lackluster in-store shopping experience. Target clearly wins for brick-and-mortar retailers, and I hope they don’t forget how important that victory is. Many consumers will enjoy the convenience that Target Circle 360 will bring. However, many consumers will prefer to continue shopping physically in Target stores.
