Saturday, October 26, 2024
HomeBusinessTarget to add Starbucks curbside pickup in bid to boost sales

Target to add Starbucks curbside pickup in bid to boost sales


Target is looking to boost sales by adding Starbucks curbside pickup at its big-box stores, the company said Wednesday.

The Minnesota-based retailer rolled out the service in select cities this summer and the new perk is expected to be available at 1,700 outposts across the country that have Starbucks cafes as well as its Drive Up pickup by the fall.

Target, which faces stiff competition in the retail space from the likes of Walmart, Amazon, Costco and Dollar General, has nearly 2,000 locations across the United States.

Target and Starbucks signed a contract allowing the retail chain to license the Seattle-based coffee brand at its locations.

Starbucks baristas at Target locations are employed by the retailer, which has had a 20-year relationship with the coffee giant.

“Our guests have long told us Drive Up is a game-changer, adding convenience to their daily life, especially when they’re short on time,” said Mark Schindele, Target’s chief stores office.

Target will offer customers curbside Starbucks pickup service beginning this summer, according to the retailer.
Getty Images

“We’ve continued listening to our guests, who’ve told us overwhelmingly that Drive Up with Starbucks would bring even more ease and joy to every Target run.”

The Post has sought comment from Target and Starbucks.

Shares of Target were trading flat on Wednesday.

Last fall, Target began a pilot program at some 250 locations where shoppers who made their purchase ahead of time online could order a coffee or another item from the Starbucks menu while picking up groceries at the curb.

The service proved to be popular among customers, many of whom ordered cherished items such as the iced brown sugar oat milk shaken espresso, birthday cake pop, and iced caramel macchiato.

Drive Up proved to be a money-making hit for Target during the COVID pandemic.

The retailer reported that its annual revenue soared by around $31 billion between fiscal year that ended in January 2020 to fiscal year that ended in January of this year.

The company’s stock price, which soared to as high as $260 a share during the pandemic, has fallen some 50%.


Target and Starbucks have had a 20-year-long partnership that includes coffee shops inside the retail stores.
Target and Starbucks have had a 20-year-long partnership that includes coffee shops inside the retail stores.
REUTERS

The company was at the center of a fierce culture war firestorm earlier this year when many on social media were demanding a boycott of the chain over its LGBTQ-friendly merchandise that was put on sale during Pride Month.

The controversial items that roused the ire of many included “tuck-friendly” underwear aimed at gender-fluid consumers.

A conservative legal organization sued Target on Tuesday on behalf of an investor, saying the retailer misrepresented the adequacy of its risk monitoring when customer backlash over LGBTQ-themed merchandise caught it by surprise.


Target has seen its stock price fall by some 50% since the coronavirus pandemic.
Target has seen its stock price fall by some 50% since the coronavirus pandemic.
Getty Images

America First Legal filed the lawsuit in Florida federal court on behalf of investor Brian Craig against Target, chief executive Brian Cornell and the company’s board of directors.

America First is a nonprofit group headed by Stephen Miller, a former adviser to ex-President Donald Trump.

With Post wires



This story originally appeared on NYPost

RELATED ARTICLES
- Advertisment -

Most Popular

Recent Comments