In a fourth-quarter earnings call a week ago, Target executives acknowledged the retailer had lost a bit of its “magic” that once retained loyal customers and enticed new ones.

The Minneapolis-based company vowed to conjure more customers at its annual investors day last week, pledging to grow sales by $15 billion in five years. And it made a step toward that on Wednesday with an enhanced slate of Circle Week deals starting March 23.

The weeklong events aren’t exactly new. A year ago, Target started the quarterly promotions week when it retired the RedCard name and launched an upgraded rewards program, which included the 360 membership to compete with Walmart+ and Amazon Prime.

This installment has some upgraded perks, like three months of free access to streaming service Peacock Premium for all Circle members and early access to deals, starting March 22, for 360 subscribers. A Peacock Premium subscription usually costs $7.99 per month.

During the week, 360 memberships — which offer free same-day delivery and two-day shipping — will also be 50% off the annual $99 fee. Gaining more shoppers, both paid subscribers and deal hunters, could help Target create its aspirational annual sales growth of 2.5% to 3%, something it hasn’t consistently achieved since the panic-buying days of the pandemic.

Despite predicting a slow year, Target CEO Brian Cornell seemed sure the plan will succeed.

“Sitting here today, I don’t think I’ve ever been more excited or more confident about the direction we’re headed,” Cornell said in the earnings call with investors.

And at least in one area, Target said it is progressing: It added 13 million new Circle members in 2024, totaling more than 110 million overall. It is also aiming to triple its 360 membership base in the next three years through “new perks, benefits and other enhancements,” according to a news release. Target declined to say how many 360 members it has.

Target Circle Week deals

While few of the advertised Circle Week deals appeared to be clearance-level, at least half price, the markdowns were wide-ranging and available in several formats.

Shoppers can nab discounts, bonus gift cards or extra merchandise for items like books, select Apple products, household essentials or fashion.

Target will also reprise its “Deal of the Day” feature, which has included popular brands like Lego, Squishmallows and Apple in the past.

For some longtime Target shoppers, the deals don’t resolve prior frustrations with the rewards program. Mark Shaughnessy of Bloomington, who primarily shops for groceries at Target, said he feels there are fewer deals exclusive to Circle credit or debit cardholders, which infamously provide 5% off all Target purchases.

Shaughnessy said he felt the changes de-emphasize card status and are Target’s attempt to steer more cardholders to pay for a 360 membership.

He still thinks the positives of the retailer outweigh its misses, even if he doesn’t see his family engaging with the Circle Week deals much because of a lack of price cuts on items he typically purchases from the retailer.

Rivaling Amazon Prime, Walmart+?

When Target first announced its revamped rewards program in March 2024, Brian Yarbrough, an analyst with Edward Jones, noted rivals Walmart+ and Amazon Prime had features Target didn’t, including media streaming and gas savings.

“I don’t think there’s a ton new in there,” he said at the time, though he praised it for being free to join and having deals automatically applied at checkout. “It’s just combining what was kind of three different programs and putting it all together.”

A year later, that sentiment still exists. Ahead of Target’s recent earnings, analysts were critical of the retailer’s lack of loyalty program offerings.

“Target’s new membership program could be stronger and more differentiated,” said Toopan Bagchi, a former Target executive who is now the founder and managing director at Starship Advisors. “There’s a real opportunity to seamlessly integrate more partnerships into a robust, compelling loyalty offering. Target should curate the right partnerships with the strongest brand fit and appeal for their guests.”

According to retail consultant Carol Spieckerman, Target’s revamped Circle Week perks “feel like a game of catch-up.” She voiced concern about the efficacy of the deals to woo new customers. While ongoing tweaks and upgrades are part of every loyalty program’s strategy, Spieckerman considers these “baseline expectations.”

With the economy struggling, many shoppers are cautious about their discretionary spending, limiting how much they spend on non-essentials like home furnishings and décor. Target will likely need to see a continued boost in these discretionary categories, and not just during the holiday seasons, to reach its goal.

Spieckerman is skeptical of the retailer’s ability to capture enough of the market with its recent Circle Week announcement.

“Expecting loyalty program upgrades to drive unprecedented growth in a volatile consumer market when retailers are tempering performance expectations?” Spieckerman asked. “That’s a really tall order.”

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