Target Circle Plus or Whatever They Call It Should Not Worry Amazon

We periodically consider what might threaten Amazon and Amazon Prime. For this reason, we have followed Walmart+ closely since its launch three years ago. (Note, Amazon Prime and Walmart+ primarily serve different shopping needs.) So, we read with interest that Target might launch a competing program.

The news reports indicate Target might expand its current Target Circle Rewards program to include shipping benefits and other features for an additional fee. Some emphasis on Target.com is expected in an enhanced, paid program. The current Circle customer loyalty program is free and offers limited benefits. Despite the significant overlap of Amazon and Target customers, our shopper decision data suggests any Target move is unlikely to cause much pain at Amazon.

We know Amazon customers shop at Target, too. Almost 80% of Amazon customers in 2023 reported that they have ever shopped at Target (Chart 1). For comparison, over 90% of the Amazon customers also had shopped at Walmart.