Target is set to expand its curbside pickup service by adding Starbucks drinks and food to over 1,700 of its stores across the United States. The rollout will begin this summer and is expected to be completed by October.
Target has been actively experimenting with different strategies to enhance the shopping experience and increase customer loyalty. The introduction of Starbucks curbside pickup service at select Target stores in the fall proved to be immensely popular.
The addition of Starbucks to Target’s curbside pickup service is a strategic move, considering the success of their Drive Up service during the pandemic. Drive Up contributed significantly to the company’s e-commerce and sales growth. In fact, customers who tried Drive Up for the first time ended up spending 20% to 30% more at Target.
Despite the positive news, Target is anticipating slower sales as it prepares to report its fiscal second-quarter earnings next Wednesday. However, the company is hopeful due to improving profit margins.
Shares of Target have seen a decline of about 12% this year. However, the partnership with Starbucks to offer curbside pickup service may help boost sales and investor confidence in the future.
Meanwhile, Starbucks has been diversifying its store formats to cater to changing customer preferences. The presence of Starbucks cafes inside grocery and Target stores has proven to be mutually beneficial for Starbucks and the retailers, driving sales for both.
The collaboration between Target and Starbucks is a strategic step towards adapting to the evolving preferences of consumers. By providing the convenience of curbside pickup for Starbucks products, Target aims to further enhance the overall shopping experience and meet the growing demands of customers in the digital age.
Overall, this expansion of Target’s curbside pickup service to include Starbucks items is likely to be welcomed by customers and could potentially drive sales for both companies. As the rollout progresses, consumers can expect an easy and efficient way to pick up their favorite Starbucks drinks and food items at their local Target store.
