Target, is set to enhance sales by introducing Starbucks drinks and food to its curbside pickup service nationwide. This strategic move will be implemented in over 1,700 Target stores that already feature Starbucks cafes and the Drive Up curbside service. The company aims to complete this rollout by October, covering the vast majority of its nearly 2,000 locations.
This initiative is a part of Target’s broader strategy to enrich the shopping experience and foster customer loyalty. With consumers now prioritizing experiences like concerts and dining over purchasing discretionary items, Target has been innovating. The retailer has introduced mini Ulta Beauty shops, faster shipping, and even curbside returns.
The collaboration between Target and Starbucks isn’t new. Target has a licensing agreement with the coffee giant, and the baristas in Target stores are its employees. The idea of Starbucks curbside pickup was piloted in a few stores last fall, allowing customers to add Starbucks items to their online curbside orders. Popular choices included the Iced brown sugar oat milk shaken espresso and the iced caramel macchiato.
Drive Up, Target’s curbside service, played a significant role in boosting the company’s e-commerce sales during the Covid-19 pandemic. The service has shown that customers using it for the first time tend to spend 20%-30% more than before. This success has led Target to expand its curbside offerings, now including items like beer and wine.
Meanwhile, Starbucks has been adapting its business model. The coffee chain has been focusing on mobile orders, drive-thru services, and even exclusive cafes for mobile orders. Starbucks’ presence in grocery and Target stores has been beneficial, driving sales for both the coffee brand and the retailers.
