Target Is Giving Shoppers Just What They Want for the Holidays: A Latte To Go
Running late but in serious need of a latte? Target has you covered this holiday season. Even better, you won't even have to leave your car!
The brand synonymous with a bullseye just announced that customers will soon be able to pre-order Starbucks lattes and other menu items for curbside car delivery. Expected to be in full swing by the beginning of the holiday season, this convenient offer will be available at 200 Target locations nationwide.
Target and Starbucks have actually been collaborating for quite some time. The two major American brands first partnered in 1999, and as of 2016 there were over 1,300 Starbucks coffee shops located inside Target stores. Fast forward to 2022, and Target has been quietly testing out Starbucks curbside delivery for most of this year at select locations.
According to Target COO John Mulligan, the trial run has been a smash success so far. Target shoppers have wanted to grab a quick coffee with their curbside orders for a long time now, he explained on an earnings call earlier this week.
"This has been a request for a long time from guests. 'I'm getting milk. I'm getting diapers. Why can't I get my latte to go as well?'" he said, before adding that the trial Starbucks curbside feature proved "very, very popular" during Q2 of this year. Few further details were given, but Mulligan added that a "scaled-down" Starbucks menu was used during the trial run.
One of America's largest and most profitable retail chains, Target boasts just under 2,000 U.S. locations. Despite a tough third quarter featuring sales "well below expectations" this year, the mega-retailer is optimistic about the future—and believes their Drive-Up curbside delivery program bolstered by the addition of Starbucks will help turn things around in Q4.
For example, Target CFO Michael Fiddelke explained on the earnings call that the Target Drive-Up curbside feature produced "high single-digit" sales growth in the third quarter this year after a notable 80% jump in 2021.
Target's curbside service starts online. Shoppers either use the Target mobile app or website to pre-order their goods, then they park in a designated spot for pick-up outside their local store, and an employee delivers the order right to the car.