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Target, Tractor Supply Expand Loyalty Offerings

Retailers Examine Models to Capture and Keep Base

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Target is the latest retailer to lean into customer loyalty programs, unveiling their revamped Target Circle 360, an update to the Target Circle program.

This paid membership mirrors the benefits of Walmart+ andAmazon Prime, providing perks such as free same-day delivery through Shipt and free two-day shipping directly from Target. This initiative is a response to the notable increase in same-day delivery sales amidst a decline in other sales channels.

Walmart, too, has been enhancing its customer loyalty strategies in programs like Walmart+, which offers benefits including free delivery and exclusive discounts. Like Target's initiative, Walmart+ aims to solidify customer loyalty through convenience and value, competing directly with other major retailers' subscription services.

Tractor Supply Company also announced upgrades its Neighbor’s Club loyalty program to increase personalization and provide more value to its members. The revamped program features a new, lower spending threshold for Preferred status eligibility and offers rewards starting at a 200-point threshold. This evolution is backed by data analytics and AI to tailor customer communications and recommendations.

These developments across major retailers like Target, Tractor Supply, and Walmart reflect a broader trend in the retail industry toward leveraging loyalty programs and technology to create more personalized, efficient, and rewarding shopping experiences. Each company's approach to enhancing its loyalty program—whether through offering expedited shipping, leveraging AI for personalized recommendations, or providing financial incentives—demonstrates a keen awareness of consumer preferences for convenience, speed, and personalization in their shopping journeys.

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