Target just announced a new paid membership tier. Here's what $49 gets you.

• Target says it will soon launch Circle 360, a paid membership tier with unlimited same-day delivery.
• The move ratchets up the competition with similar offerings from Walmart and Amazon.
• Target fulfills 95% of its web and app orders from its fleet of around 2,000 stores.

Target is stepping up the competition with Amazon and Walmart with a new paid membership tier, Circle 360, that offers unlimited same-day delivery.

CEO Brian Cornell said Tuesday the new Circle 360 service will launch on April 7 and will lean heavily on Target's Shipt service to "build unmistakable recognition for Target same-day delivery."

Launched in 2019, Target's Circle program now boasts more than 100 million members who visit five times more often and spend five times as much on average as the typical non-Circle shopper, Target said.

For a promo price of $49, Target says upgrading to the Circle 360 tier can deliver products to members in as little as one hour with no additional fees or markups. In addition, customers will have access to Shipt's "preferred shoppers" and the marketplace of other retail brands.

"Target Circle 360 members can order everything from groceries to household essentials to the newest must-have item with no additional fees, no markups, and support from our preferred shoppers," said Cara Sylvester, Target's executive vice president and chief guest experience officer.

The Bullseye retailer has invested heavily over the past decade in a strategy it calls "stores as hubs," which taps into its fleet of nearly 2,000 US stores to fulfill 95% of its web and app orders.

Target's drive-up services gave the company a significant sales boost during the pandemic, and Cornell said home delivery is "ready for a step-change" when it comes to winning and keeping new customers.

The announcement follows Bloomberg's reporting last month that a paid membership, code-named "Project Trident," was in the works to better counter Amazon Prime and Walmart+.