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MINNEAPOLIS - Target Corporation (NYSE: TGT), a prominent player in the Consumer Staples Distribution & Retail industry with a market capitalization of $44.79 billion, announced today a significant expansion of its Target Circle 360 program benefits, now offering its members no price markups on same-day delivery services across Shipt’s extensive network of over 100 retailers and grocers. According to InvestingPro analysis, Target currently appears undervalued, suggesting potential upside for investors. This enhancement to the membership program is positioned to save members both time and money by providing a more cost-effective and convenient shopping experience.
Previously, Target Circle 360 members already had access to markup-free same-day delivery from Target stores. The new update extends this benefit to include a variety of national and regional retailers in Shipt’s marketplace, such as CVS, PetSmart, and Lowe’s Home Improvement, as well as regional grocers like Hy-Vee and Giant Eagle. This strategic move comes as Target maintains strong financial health with annual revenue of $106.57 billion and trades at an attractive P/E ratio of 11.12. The company describes this move as the creation of a "digital shopping center," aiming to simplify the shopping process by allowing customers to order from multiple stores through a single platform with consistent pricing.
Cara Sylvester, Target’s executive vice president and chief guest experience officer, emphasized the company’s commitment to enhancing customer value and convenience. The program’s new feature is expected to help members save an average of seven hours per month and over $300 annually by consolidating their shopping needs into one streamlined service.
In addition to the no-markup delivery benefit, Target Circle 360 offers other exclusive perks. These include early access to deals, monthly freebies, free two-day shipping on select items, extended return windows, and unlimited same-day delivery for orders over $35. The membership also incorporates all the advantages of the free-to-join Target Circle program, such as access to automatic deals and personalized bonuses.
Shipt CEO Kamau Witherspoon highlighted the importance of the Shipt marketplace in providing convenient access to a wide range of retailers, especially at a time when consumers are looking to maximize both time and financial resources.
The expansion of the Target Circle 360 program builds on Target’s aim to provide additional value to its customers following the April 2024 relaunch of the Target Circle program. Since then, the retailer has welcomed 13 million new members, facilitating significant savings for them.
For new members interested in the Target Circle 360 program, Target is offering a $20 discount on their first order of $75 or more, with certain exclusions and terms.
This announcement is based on a press release statement from Target Corporation.
In other recent news, Target Corporation has been the focus of several analyst adjustments and discussions regarding its financial outlook. Barclays analyst Seth Sigman lowered the price target for Target to $102 from $140, citing a challenging first quarter and concerns over declining transaction volumes and a widening performance gap compared to other mass merchants. Telsey Advisory Group also revised its price target down to $130 from $145, maintaining an Outperform rating while highlighting concerns over softer consumer spending and increased costs. Meanwhile, Citi analysts slightly increased their price target to $97, maintaining a Neutral stance, and noted that Target might retract its full-year 2025 EPS guidance due to ongoing uncertainties.
Morgan Stanley, on the other hand, reaffirmed its Overweight rating with a $160 price target, suggesting that despite a likely weak quarter, Target’s valuation remains attractive compared to its peers. The firm pointed out Target’s focus on expanding its eCommerce platform and increasing its margin through advertising income as part of its long-term strategy. Additionally, President Donald Trump is set to meet with representatives from major retailers, including Target, to discuss the impact of tariffs on their businesses. This meeting comes amid a temporary halt in increased tariffs, providing an opportunity for negotiations. The tariffs have raised concerns over potential price increases and their impact on consumer behavior, as evidenced by a recent surge in US retail sales.
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