The first three months of 2024 have been marked by historically fierce competition among some of retail's largest companies.
In March Target (TGT) launched a paid membership program, called Target Circle 360. The plan offers members free and fast shipping, initially for $49 a year and then $99 after the initial promotional signup period concludes.
Target Circle 360, launching April 7, will include a number of benefits:
- Unlimited free same-day delivery for select orders over $35
- As little as one-hour delivery on select items
- Free two-day shipping
- Access to Shipt's "preferred shoppers" program
Of course, Target Circle 360 is not the first of its kind. It's an answer to Amazon (AMZN) Prime, which costs $139 a year and offers:
- Free shipping and returns, often two-day or next-day on eligible items
- Access to Prime Video streaming
- Savings at Whole Foods Market
- Access to the Amazon Prime Rewards Visa Signature Card
- Access to Amazon Fresh grocery stores
- Try Before You Buy shopping
- Amazon Photos storage
In 2020, Walmart (WMT) entered its own horse in the race, Walmart+, which costs $98 a year. Its membership includes:
- Free store delivery
- Free shipping and returns on eligible items
- Fuel savings at Exxon, Mobil, Walmart and Murphy gas stations
- Included Paramount+ streaming subscription
- Limited auto maintenance at Walmart Auto Care Centers
- Cash back on select travel expenses
- Members-only prices during select promotions, like Black Friday
- Mobile shopping in-store
Walmart introduces new product line
Since each of the big three retailers has its own paid membership program offering customers a bevy of perks, each must now add additional products that its rivals don't have.
In late February, Walmart added an exclusive L'Oréal hair-care line to attract beauty enthusiasts and younger shoppers who might be seeking out specialty lines to help them take care of their wellness and appearance.
And in March, Walmart said it would add two additional brands to its arsenal in an effort to attract a similar demographic.
The brands, Plus Ultra and Zimba, are specialty oral-care brands that Walmart hopes will attract shoppers concerned about wellness and health, especially a younger cohort of Gen Z and millennial consumers.
Zimba, which produces a line of teeth whitening and funky-flavored premium products, is sold at trendy and holistic health food stores including Sprouts Farmers Market and Erewhon -- a cult favorite grocery store in Los Angeles.
Plus Ultra offers a sustainable approach to oral care and makes environmentally friendly disposable products like electric-toothbrush heads and other accessories. Currently, it can be found at shops like Whole Foods Markets, Thrive Market and Lassens.
The companies are considered sister companies and are both female-founded.
Walmart bets on sustainable wellness products
Walmart is hoping that its bet on sustainable wellness products aimed squarely at Gen Z and Millennials will attract younger shoppers and make them long-term customers. Plus Ultra will be available initially at 600 Walmart stores across the U.S., while Zimba will launch in 4,500 Walmart stores.
The companies' entrance into the country's largest mainstream and discount grocer means a firmer foothold for sustainable companies that may have previously been considered more niche or harder to find.
"We are excited by the launch of both brands into Walmart, which marks a very significant step," Christina Ramirez, founder of Plus Ultra and president of both brands, said in a statement.
"Younger consumers especially, Millennials and Gen Z, are seeking new affordable, sustainable lifestyle products to become part of their every-day personal-care routines, and Plus Ultra and Zimba resonate with shoppers who care about product efficacy and the planet."
