Could Target be looking at a paid loyalty program?

Target may be looking at a paid membership program similar to those offered by Amazon and Walmart, reports Bloomberg. 

Citing people close to the matter, Bloomberg said the program, currently called Project Trident, could be rolled out later this year. 

Target Circle is the retailer’s current loyalty program which offers deals and rewards for purchases, and the paid plan would up the level of special offers for a fee similar to Amazon Prime and Walmart . It also could involve Shipt, which is the grocery delivery business Target purchased back in 2017. 

According to Bloomberg, memberships try to get shoppers to shop both online and at the store, and those who spend across all platforms have a tendency to spend more overall. 

Aside from its latest quarterly report where it beat lowered projections, Target has been struggling financially. 

Target has to put the blame of soft results on external factors. During the third quarter earnings call, Target Chairman and CEO Brian Cornell talked about factors like student loan repayments, continued inflation, and increased credit card debt during the call. Shrink inventory has also been an ongoing issue for the Minneapolis-based retailer.