Dive Brief:
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Target Corp. has widely expanded the number of items available in its subscription program, with an emphasis on baby, pet, household, grocery, beauty, and office items.
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The company is now offering a 5% discount to all subscription orders and its RED cardholders, who already get 5% off, will get a 10% discount on those orders.
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Target expanded the program after what it says was a successful pilot last fall. Its subscriptions now account for 15% of the sales of eligible products — even before the discount was instituted, according to a spokesperson.
Dive Insight:
Target is getting aggressive with this subscription service, pointedly going head to head with Amazon’s similar service. Amazon offers more categories as well as free shipping, but observers wonder more about whether Target can make money if it competes with Amazon on price.